PARNASSUS FIXED INCOME FUND
Portfolio of Investments as of March 31, 2020 (unaudited)
Preferred Stocks | Interest Rate | Maturity Date | Shares | Market Value ($) | ||||||||||||
Banks (1.0%) | ||||||||||||||||
Bank of America Corp. | 5.00 | % | 09/17/2024 | 111,847 | 2,626,168 | |||||||||||
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Equity Real Estate Investment Trusts (1.5%) | ||||||||||||||||
Digital Realty Trust Inc. | 5.20 | % | 10/10/2024 | 59,000 | 1,359,950 | |||||||||||
Public Storage | 5.15 | % | 06/02/2022 | 111,127 | 2,700,386 | |||||||||||
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4,060,336 | ||||||||||||||||
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Total investment in preferred stocks (2.5%) (cost $7,137,692) | 6,686,504 | |||||||||||||||
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Commercial Mortgage-Backed Securities | Interest Rate | Maturity Date | Principal Amount ($) | Market Value ($) | ||||||||||||
JP Morgan Mortgage Trust Series 2011-C4, Class A4 | 4.39 | % | 07/15/2046 | 308,296 | 312,920 | |||||||||||
UBS-Barclays Mortgage Trust Series 2012-C2, Class A3 | 3.06 | % | 05/10/2063 | 422,091 | 424,189 | |||||||||||
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Total investment in commercial mortgage-backed securities (0.3%) (cost $734,098) |
| 737,109 | ||||||||||||||
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Corporate Bonds | Interest Rate | Maturity Date | Principal Amount ($) | Market Value ($) | ||||||||||||
Air Freight & Logistics (1.5%) | ||||||||||||||||
FedEx Corp. | 4.75 | % | 11/15/2045 | 4,000,000 | 3,833,068 | |||||||||||
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Airlines (1.4%) | ||||||||||||||||
Southwest Air 07-1 Trust | 6.15 | % | 08/01/2022 | 684,583 | 703,937 | |||||||||||
Southwest Airlines Co. | 2.65 | % | 11/05/2020 | 3,000,000 | 2,967,000 | |||||||||||
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3,670,937 | ||||||||||||||||
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Apparel & Luxury Goods (0.8%) | ||||||||||||||||
Hanesbrands Inc. | 4.63 | % | 05/15/2024 | 2,000,000 | 1,980,000 | |||||||||||
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Auto Components (1.4%) | ||||||||||||||||
APTIV plc | 4.25 | % | 01/15/2026 | 3,500,000 | 3,564,085 | |||||||||||
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Building Products (1.5%) | ||||||||||||||||
Masco Corp. | 4.45 | % | 04/01/2025 | 4,000,000 | 3,980,496 | |||||||||||
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Capital Markets (1.2%) | ||||||||||||||||
Charles Schwab Corp. | 3.45 | % | 02/13/2026 | 3,000,000 | 3,107,688 | |||||||||||
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Chemicals (1.4%) | ||||||||||||||||
Praxair Inc. | 3.20 | % | 01/30/2026 | 3,477,000 | 3,679,653 | |||||||||||
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Commercial Services & Supplies (1.6%) | ||||||||||||||||
Waste Management Inc. | 3.50 | % | 05/15/2024 | 1,500,000 | 1,558,126 | |||||||||||
Waste Management Inc. | 3.15 | % | 11/15/2027 | 2,500,000 | 2,580,372 | |||||||||||
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4,138,498 | ||||||||||||||||
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Communications Equipment (0.4%) | ||||||||||||||||
Cisco Systems Inc. | 2.50 | % | 09/20/2026 | 1,000,000 | 1,042,363 | |||||||||||
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Consumer Finance (1.2%) | ||||||||||||||||
Mastercard Inc. | 3.38 | % | 04/01/2024 | 3,000,000 | 3,163,542 | |||||||||||
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Containers & Packaging (2.2%) | ||||||||||||||||
Ball Corp. | 4.88 | % | 03/15/2026 | 2,000,000 | 3,120,000 | |||||||||||
Sealed Air Corp. | 5.25 | % | 04/01/2023 | 2,500,000 | 2,550,000 | |||||||||||
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5,670,000 | ||||||||||||||||
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Equity Real Estate Investment Trusts (1.6%) | ||||||||||||||||
Iron Mountain Inc. | 5.25 | % | 03/15/2028 | 2,000,000 | 1,975,600 | |||||||||||
Regency Centers LP | 3.75 | % | 06/15/2024 | 2,000,000 | 2,095,362 | |||||||||||
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4,070,962 | ||||||||||||||||
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Food & Staples Retailing (2.4%) | ||||||||||||||||
Costco Wholesale Corp. | 3.00 | % | 05/18/2027 | 3,000,000 | 3,181,428 | |||||||||||
Mondelez International Inc. | 4.13 | % | 05/07/2028 | 3,000,000 | 3,149,766 | |||||||||||
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6,331,194 | ||||||||||||||||
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Health Care Equipment (2.5%) | ||||||||||||||||
Danaher Corp. | 3.35 | % | 09/15/2025 | 4,000,000 | 4,178,440 | |||||||||||
Hologic Inc. | 4.38 | % | 10/15/2025 | 2,500,000 | 2,475,725 | |||||||||||
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6,654,165 | ||||||||||||||||
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Hotel Restaurant & Leisure (0.5%) | ||||||||||||||||
Hilton Worldwide Finance LLC | 4.88 | % | 04/01/2027 | 1,500,000 | 1,425,000 | |||||||||||
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Household Products (1.0%) | ||||||||||||||||
The Clorox Company | 3.50 | % | 12/15/2024 | 2,500,000 | 2,704,905 | |||||||||||
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Industrial Conglomerates (1.1%) | ||||||||||||||||
Pentair Finance SA | 3.15 | % | 09/15/2022 | 3,050,000 | 2,917,429 | |||||||||||
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Interactive Media & Services (1.0%) | ||||||||||||||||
Alphabet Inc. | 2.00 | % | 08/15/2026 | 2,500,000 | 2,639,418 | |||||||||||
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Machinery (2.5%) | ||||||||||||||||
Fortive Corp. | 3.15 | % | 06/15/2026 | 3,000,000 | 3,506,563 | |||||||||||
Xylem Inc. | 3.25 | % | 11/01/2026 | 3,000,000 | 3,174,957 | |||||||||||
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6,681,520 | ||||||||||||||||
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Media (2.4%) | ||||||||||||||||
Comcast Corp. | 4.25 | % | 10/15/2030 | 4,500,000 | 5,237,460 | |||||||||||
The Walt Disney Co.l | 2.95 | % | 06/15/2027 | 1,000,000 | 1,026,279 | |||||||||||
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6,263,739 | ||||||||||||||||
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Multi-line Retail (0.9%) | ||||||||||||||||
Nordstrom Inc. | 4.00 | % | 03/15/2027 | 3,000,000 | 2,472,534 | |||||||||||
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Pharmaceuticals (1.1%) | ||||||||||||||||
Merck & Co., Inc. | 3.40 | % | 03/07/2029 | 2,500,000 | 2,723,395 | |||||||||||
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Snack & Juice Bars (1.0%) | ||||||||||||||||
Starbucks Corp. | 2.45 | % | 06/15/2026 | 2,500,000 | 2,488,817 | |||||||||||
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Software (5.5%) | ||||||||||||||||
Adobe Systems Inc. | 3.25 | % | 02/01/2025 | 2,500,000 | 2,700,105 | |||||||||||
Autodesk Inc. | 4.38 | % | 06/15/2025 | 3,500,000 | 3,742,406 | |||||||||||
Cadence Design Systems Inc. | 4.38 | % | 10/15/2024 | 3,500,000 | 3,470,946 | |||||||||||
Microsoft Corp. | 2.40 | % | 08/08/2026 | 1,500,000 | 1,592,381 | |||||||||||
Microsoft Corp. | 4.25 | % | 02/06/2047 | 2,000,000 | 3,221,578 | |||||||||||
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14,727,416 | ||||||||||||||||
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Technology Hardware (1.5%) | ||||||||||||||||
Apple Inc. | 2.85 | % | 02/23/2023 | 2,000,000 | 2,086,696 | |||||||||||
Apple Inc. | 4.38 | % | 05/13/2045 | 1,000,000 | 1,906,973 | |||||||||||
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3,993,669 | ||||||||||||||||
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Telecom Services GIC (1.3%) | ||||||||||||||||
Verizon Communications Inc. | 4.02 | % | 12/03/2029 | 3,000,000 | 3,369,312 | |||||||||||
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Transportation & Infrastructure (1.0%) | ||||||||||||||||
Burlington Northern Santa Fe Corp. | 3.85 | % | 09/01/2023 | 2,500,000 | 2,664,565 | |||||||||||
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Total investment in corporate bonds (41.9%) (cost $108,763,304) | 109,958,370 | |||||||||||||||
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Supranational Bonds | Interest Rate | Maturity Date | Principal Amount ($) | Market Value ($) | ||||||||||||
International Bank for Reconstruction & Development | 3.13 | % | 11/20/2025 | 4,000,000 | 4,516,140 | |||||||||||
International Finance Corp. | 2.00 | % | 10/24/2022 | 5,000,000 | 5,185,355 | |||||||||||
International Finance Corp. | 2.13 | % | 04/07/2026 | 4,000,000 | 4,289,440 | |||||||||||
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Total investment in supranational bonds (5.3%) (cost $12,741,087) |
| 13,990,935 | ||||||||||||||
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U.S. Government Treasury Bonds | Interest Rate | Maturity Date | Principal Amount ($) | Market Value ($) | ||||||||||||
U.S. Treasury | 1.88 | % | 06/30/2020 | 2,000,000 | 2,008,822 | |||||||||||
U.S. Treasury | 2.88 | % | 10/31/2020 | 2,000,000 | 2,031,796 | |||||||||||
U.S. Treasury | 2.25 | % | 03/31/2021 | 3,000,000 | 3,063,516 | |||||||||||
U.S. Treasury | 2.38 | % | 03/15/2022 | 3,000,000 | 3,126,444 | |||||||||||
U.S. Treasury | 1.75 | % | 07/15/2022 | 3,000,000 | 3,102,774 | |||||||||||
U.S. Treasury | 1.88 | % | 08/31/2022 | 2,000,000 | 2,078,360 | |||||||||||
U.S. Treasury | 1.38 | % | 02/15/2023 | 4,000,000 | 4,126,720 | |||||||||||
U.S. Treasury | 2.50 | % | 03/31/2023 | 2,000,000 | 2,131,954 | |||||||||||
U.S. Treasury | 2.88 | % | 10/31/2023 | 3,000,000 | 3,271,641 | |||||||||||
U.S. Treasury | 2.50 | % | 01/31/2024 | 2,000,000 | 2,165,546 | |||||||||||
U.S. Treasury | 2.38 | % | 02/29/2024 | 3,000,000 | 3,238,710 | |||||||||||
U.S. Treasury | 2.13 | % | 03/31/2024 | 3,000,000 | 3,212,694 | |||||||||||
U.S. Treasury | 1.75 | % | 07/31/2024 | 3,000,000 | 3,180,000 | |||||||||||
U.S. Treasury | 1.25 | % | 08/31/2024 | 2,000,000 | 2,078,984 | |||||||||||
U.S. Treasury | 2.25 | % | 11/15/2024 | 3,000,000 | 3,257,577 | |||||||||||
U.S. Treasury | 1.50 | % | 11/30/2024 | 2,000,000 | 2,106,016 | |||||||||||
U.S. Treasury | 1.38 | % | 01/31/2025 | 1,500,000 | 1,571,425 | |||||||||||
U.S. Treasury | 2.00 | % | 02/15/2025 | 3,000,000 | 3,232,617 | |||||||||||
U.S. Treasury | 2.25 | % | 11/15/2025 | 3,000,000 | 3,296,718 | |||||||||||
U.S. Treasury | 2.63 | % | 01/31/2026 | 2,000,000 | 2,247,032 | |||||||||||
U.S. Treasury | 2.25 | % | 03/31/2026 | 2,000,000 | 2,207,578 | |||||||||||
U.S. Treasury | 1.88 | % | 07/31/2026 | 4,000,000 | 4,336,876 | |||||||||||
U.S. Treasury | 2.00 | % | 11/15/2026 | 3,000,000 | 3,285,585 | |||||||||||
U.S. Treasury | 1.63 | % | 11/30/2026 | 2,000,000 | 2,142,032 | |||||||||||
U.S. Treasury | 2.25 | % | 02/15/2027 | 2,000,000 | 2,230,390 | |||||||||||
U.S. Treasury | 2.38 | % | 05/15/2027 | 3,000,000 | 3,384,141 | |||||||||||
U.S. Treasury | 2.25 | % | 08/15/2027 | 3,000,000 | 3,365,976 | |||||||||||
U.S. Treasury | 2.75 | % | 02/15/2028 | 5,000,000 | 5,828,905 | |||||||||||
U.S. Treasury | 2.88 | % | 05/15/2028 | 3,000,000 | 3,537,189 | |||||||||||
U.S. Treasury | 2.88 | % | 08/15/2028 | 3,000,000 | 3,547,500 | |||||||||||
U.S. Treasury | 3.13 | % | 11/15/2028 | 2,000,000 | 2,414,454 | |||||||||||
U.S. Treasury | 2.63 | % | 02/15/2029 | 2,000,000 | 2,337,656 | |||||||||||
U.S. Treasury | 2.38 | % | 05/15/2029 | 2,000,000 | 2,300,704 | |||||||||||
U.S. Treasury | 1.63 | % | 08/15/2029 | 1,500,000 | 1,628,028 | |||||||||||
U.S. Treasury | 1.75 | % | 11/15/2029 | 2,000,000 | 2,197,188 | |||||||||||
U.S. Treasury | 1.50 | % | 02/15/2030 | 4,000,000 | 4,306,720 | |||||||||||
U.S. Treasury | 3.50 | % | 02/15/2039 | 2,000,000 | 2,849,376 | |||||||||||
U.S. Treasury | 3.13 | % | 11/15/2041 | 1,000,000 | 1,366,172 | |||||||||||
U.S. Treasury | 2.75 | % | 08/15/2042 | 1,000,000 | 1,291,172 | |||||||||||
U.S. Treasury | 3.00 | % | 05/15/2045 | 1,000,000 | 1,362,188 | |||||||||||
U.S. Treasury | 2.50 | % | 02/15/2046 | 1,500,000 | 1,890,938 | |||||||||||
U.S. Treasury | 3.00 | % | 08/15/2048 | 2,000,000 | 2,778,126 | |||||||||||
U.S. Treasury | 3.00 | % | 02/15/2049 | 500,000 | 696,621 | |||||||||||
U.S. Treasury | 2.88 | % | 05/15/2049 | 2,000,000 | 2,728,984 | |||||||||||
U.S. Treasury | 2.25 | % | 08/15/2049 | 1,000,000 | 1,218,242 | |||||||||||
U.S. Treasury | 2.00 | % | 02/15/2050 | 1,000,000 | 1,158,477 | |||||||||||
U.S. Treasury (TIPS) | 0.63 | % | 07/15/2021 | 1,144,440 | 1,133,630 | |||||||||||
U.S. Treasury (TIPS) | 0.13 | % | 01/15/2022 | 1,139,630 | 1,123,848 | |||||||||||
U.S. Treasury (TIPS) | 0.38 | % | 07/15/2025 | 1,087,690 | 1,109,414 | |||||||||||
U.S. Treasury (TIPS) | 1.75 | % | 01/15/2028 | 1,231,230 | 1,399,686 | |||||||||||
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Total investment in U.S. government treasury bonds (47.9%) (cost $114,524,977) |
| 125,687,142 | ||||||||||||||
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Total investment in long-term securities (97.9%) (cost $243,901,158) | 257,060,060 | |||||||||||||||
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Short-Term Securities | Interest Rate | Maturity Date | Principal Amount ($) | Market Value ($) | ||||||||||||
Time Deposits (1.6%) | ||||||||||||||||
BBH Cash Management Service | ||||||||||||||||
JP Morgan New York | 0.15 | % | 04/02/2020 | 4,325,522 | 4,325,522 | |||||||||||
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Securities Purchased with Cash Collateral from Securities Lending |
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Registered Investment Companies (0.4%) | ||||||||||||||||
Invesco Aim Government & Agency Portfolio | ||||||||||||||||
Short-Term Investments Trust, Institutional Class | 0.87 | % | 1,031,064 | |||||||||||||
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Total short-term securities (2.0%) (cost $5,356,586) | 5,356,586 | |||||||||||||||
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Total securities (99.9%) (cost $249,257,744) | 262,416,646 | |||||||||||||||
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Payable upon return of securities loaned (-0.4%) | (1,031,064 | ) | ||||||||||||||
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Other assets and liabilities (0.5%) | 1,218,509 | |||||||||||||||
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Total net assets (100.0%) | 262,604,091 | |||||||||||||||
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l | This security, or partial position of this security, was on loan at March 31, 2020. The total value of the securities on loan at March 31, 2020 was $1,010,436. | |
plc | Public Limited Company | |
LP | Limited Partnership | |
TIPS | Treasury Inflation Protected Security |
The portfolio of investments as of March 31, 2020 has not been audited. This report is provided for the general information of the Fund’s shareholders. For more information regarding the Fund, portfolio holdings and other significant accounting policies, please see the Fund’s most recent prospectus and annual report.
Income Taxes:
At March 31, 2020, the net unrealized appreciation (depreciation) based on the cost of long-term investments of securities for income tax purposes was as follows:
Parnassus Fixed Income Fund | ||||
Cost of long-term investments | $ | 249,257,744 | ||
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Unrealized appreciation | $ | 15,553,722 | ||
Unrealized depreciation | (2,394,820 | ) | ||
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Net unrealized appreciation | $ | 13,158,902 | ||
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The Parnassus Fixed Income Fund follows Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosure, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s portfolio investments. These inputs are summarized in three levels, Level 1 - unadjusted quoted prices in active markets for identical investments, Level 2 – other significant observable inputs (including quoted prices for similar investments) and Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The following table summarizes the portfolio’s financial assets as of March 31, 2020, that is valued at fair value on a recurring basis:
Investment Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Preferred Stocks | $ | 6,686,504 | $ | — | $ | — | $ | 6,686,504 | ||||||||
Commercial Mortgage-Backed Securities | — | 737,109 | — | 737,109 | ||||||||||||
Corporate Bonds | — | 109,958,370 | — | 109,958,370 | ||||||||||||
Supranational Bonds | — | 13,990,935 | — | 13,990,935 | ||||||||||||
U.S. Government Treasury Bonds | — | 125,687,142 | — | 125,687,142 | ||||||||||||
Short-Term Investments | 5,356,586 | — | — | 5,356,586 | ||||||||||||
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Total | $ | 12,043,090 | $ | 250,373,556 | $ | — | $ | 262,416,646 | ||||||||
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In accordance with procedures established by the Funds’ Trustees, all fair value securities as submitted by the Fund’s treasurer are reviewed and approved by the Trustees. The Fund’s valuation committee is comprised of Independent Trustees who also comprise the Funds’ audit committee. The committee reviews the methodologies used by the Fund when securities have been identified as being fair valued and include the percentages used when determining liquidity discounts or discounts to be taken for lack of marketability. The Trustees review the changes in fair value measurement and methods used to substantiate the unobservable inputs on a quarterly basis.