Your Introductory Rundown of the Parnassus Asia Fund (PAFSX)



The Parnassus Asia Fund (PAFSX)

The Parnassus Asia Fund (PAFSX) invests at least 80% of its net assets in stocks of Asian companies, which it defines as “companies domiciled or headquartered in Asia, companies that have a substantial amount of business in Asia, or companies whose primary trading markets for their securities are located in Asia.” Apart from common stocks, the fund can invest in ADRs (American Depository Receipts) or ADSs (American Depositary Shares) of Asian companies traded on US exchanges. The fund is managed by Jerome L. Dodson and Billy J. Hwan.

PAFSX’s fund documents define it as a multi-cap fund that invests in well-established companies as well as companies with less than $1 billion in market-cap. Apart from financial health, fund managers also look at environmental, social, and governance factors before making an investment.

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Portfolio composition

PAFSX’s house data shows that information technology, interestingly, is the largest sectoral holding of the fund, making up 43% of the portfolio as of December 2015. Consumer discretionary and industrials follow, representing a combined 31% of the fund’s assets. Financials is the only other sector that commands over one-tenth of the fund’s assets. The fund is not invested in the healthcare and energy sectors.

Compared to its benchmark, the MSCI AC Asia-Pacific Index, the fund is substantially overweight in the information technology sector and generally overweight in the consumer discretionary and industrials sectors. It’s underweight in financials, materials, and telecom services.

The biggest share

Country-wise, China and Hong Kong combined command the biggest share, making up 42.1% of the portfolio. Companies from Japan and Taiwan follow, forming a combined 36.2% of the assets. Indonesia and South Korea complete the top five invested geographies.

Applied Materials (AMAT), Micron Technology (MU), Lenovo Group (LNVGF), Air Lease (AL), and Linear Technology (LLTC) were among the fund’s 34 holdings as of the end of December. As of January 2016, the fund was managing assets worth nearly $9.3 million.

Fee and minimums

The Parnassus Asia Fund Investor Shares (PAFSX) has been around since April 2013 and has a net expense ratio of nearly 1.3%. The fund requires a minimum of $2,000 to invest, with $50 being the minimum additional investment.

Continue to the next part for a look at the key metrics of PAFSX’s performance over the past year.


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