US-based sustainability-focused asset manager Parnassus Investments has introduced its first two exchange-traded funds (ETFs), claiming both will offer actively managed high-conviction portfolios with the flexibility to pursue outperformance. The Parnassus Core Select ETF (PRCS) seeks to achieve strong long-term returns by investing in a concentrated portfolio of approximately 25 high-quality, attractively priced US large cap stocks. The Parnassus Value Select ETF (PRVS) will take a similar approach but focusing on 25 undervalued large cap stocks that are “poised to rise but are temporarily out of favour relative to their history or peers”. Both funds will provide investors with access to “carefully researched selections of high-quality companies” that demonstrate strong financial prospects and sustainable business practices, the firm said. PRCS focuses on stocks positioned for long-term growth and durability, it added, while PRVS will invest in resilient companies facing temporary challenges, capturing recovery opportunities to drive sustainable, long-term value. “Over our 40-year history, Parnassus has earned a reputation for high-conviction stock picking. These new ETFs comprise our best ideas in pursuit of outperformance,” said Benjamin Allen, CEO of Parnassus Investments. “With the launch of PRCS and PRVS, our investment process and expertise will be accessible to a new audience of ETF investors.” With US$47.9 billion in assets under management, Parnassus currently runs eight active US equity and fixed income funds, containing a small number of companies selected for their relevant products or services, durable competitive advantages, strong management teams and sustainable business practices.
