Monthly Note

Hello!

I hope everyone is enjoying the end of summer. It’s been nothing but smoke for weeks in Idaho, but it has at least kept the heat away. I have a lot of little things to pass and decided to put the letter out a bit early because of all the questions about the Parnassus Funds letters and phone calls.

In order for Mutual Funds to change certain things about their investments they require votes by the mutual fund holders. Rarely is there any concern over what they are trying to change. The decision makers are in place for a reason, and we typically defer to their judgement. The problem they have with the votes isn’t getting enough people to vote yes versus no, it’s getting enough people to vote at all, since some minimum threshold must be met. That is why they are so persistent with letters and phone calls. Many, but not all of you, are receiving letters and phone calls from Parnassus right now regarding a vote.

Unfortunately, I can not vote for you and I typically don’t know about the votes until I start getting the letters myself. It is an antiquated system that the mutual funds have no choice but to be compliant with. You are welcome to ignore them, they will eventually get the votes they need, but if you want them to stop pestering you, then you can call and vote. I wish there was some other way this was all dealt with, but in many ways the investment industry is still stuck in the 70s. LPL and my private branch have nothing to do with these votes and are powerless to change the system. The letters often look suspicious or are hard to understand. You are always welcome to call me and double check, I’m more than happy to interpret. In future monthly letters I’ll try to mention votes that are going on.

Speaking of scams and frustrating phone calls, with so many spam phone calls going out, I know it is very frustrating to try and screen calls. Most people don’t answer the phone for a number they don’t recognize and I don’t blame them. When I was at Waddell & Reed I typically made all phone calls from my personal cell, but with the move to our new office and getting a much better phone system, I use my desk phone for virtually everything now. Please add 208-534-7659 to my profile on your phone, and ideally my assistant Lynn’s number as well 208-534-7660. You can delete my NY number (started with 518), it still works but my work number rings to my cell at all times, so it is redundant.

You can text my work number. Industry regulations do not allow me to text my clients unless it is through a compliance approved special program. That program works through my office phone number, 208-534-7659, the same number referenced above. The program is only on my side of the conversation, it is not needed on your phone, but if you text me I can’t text you back unless you respond ACCEPT to the message it sends back to you. It looks a little odd when the message comes, but you just need to respond with the word ACCEPT and then I can text you normally. Again, this is not by choice, but is a requirement of the industry.

I wish the industry would catch up to modern times, but by the time they do, technology will already have moved on. Although these things are frustrating, they are designed to keep our clients safe. If it is any consolation I believe LPL is light years ahead of most other brokerage firms. If you have any questions, never hesitate to call.

Opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Because of their narrow focus, investments concentrated in certain sectors or industries will be subject to greater volatility and specific risks compared with investing more broadly across many sectors, industries and companies.