MutualFundWire.com: With Extra Concentration, a 40YO Boutique Enters ETF World

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Friday, December 13, 2024

With Extra Concentration, a 40YO Boutique Enters ETF World

Ben Allen and his 81-person team are bringing their 40-year-old, $47.9-billion-AUM (as of September 30) mutual fund firm into the exchange-traded fund world with a dual launch. The California asset manager's new offerings are even more concentrated than its usual fare.

Benjamin E. "Ben" Allen
Parnassus Investments
President, CEO, PM

Yesterday (December 12), Allen, president and CEO of Parnassus Investments, unveiled the launch of the San Francisco-based AMG subsidiary's [profile] first two ETFs: the Parnassus Core Select ETF (PRCS on the NYSE) and the Parnassus Value Select ETF (PRVS). Parnassus Investments, LLC serves as investment advisor and administrator for both new funds.

PRCS and PRVS' inception date was yesterday, and they debuted with $1 million in AUM each. PRVS comes with an expense ratio of 59 basis points, while PRCS costs 58bps.

Both PRCS and PRVS are actively managed, non-diversified funds. Allen notes that while Parnassus' usual offerings typically contain about 40 stocks each, the new ETFs are even higher conviction by that metric, with about 25 stocks per portfolio.

PRVS' PM team includes lead portfolio manager Billy Hwan and Krishna Chintalapalli, both senior analysts at Parnassus. PRCS' PM team includes Todd Ahlsten, executive vice president and chief investment officer, as lead PM, with Allen and senior analyst Andrew Choi also on the team.

"These new ETFs comprise our best ideas in pursuit of outperformance," Allens states. "With the launch of PRCS and PRVS, our investment process and expertise will be accessible to a new audience of ETF investors."

PRCS and PRVS are both series of the Parnassus Income Funds Trust, which the Parnassus team has filed to rename as the Parnassus ETF Trust on December 31. The new ETFs' other services providers include: Brown Brothers Harriman & Co. as accounting agent, custodian, sub-administrator, and transfer agent; Foley & Lardner LLP as counsel; Parnassus Funds Distributor, LLC as distributor; and PricewaterhouseCoopers LLP as independent accounting firm.

Printed from: MFWire.com/story.asp?s=68292

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