(PUB) Investing 2016

23

August 2016

Morningstar FundInvestor

Data through July 31, 2016 FINRA members: For internal or institutional use only. Parnassus

Ticker PARNX

Yield 3.7%

Total Assets $755 mil

Mstar Category Large Growth

Benchmark 1: Russell 1000 Growth TR USD Benchmark 2: S&P 500 TR USD Morningstar Analyst Rating 08-01-16 ´

Investment Style Equity

Historical Profile Return Risk Rating High High QQQQ Above Avg

4 7 7 7 8 7 4 4

20.0 25.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

15.0

Morningstar Pillars Process

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

10.0

Performance

People Parent

Performance Quartile (within Category)

& ) & & * ( & * & ) ( 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 07-16 36.23 36.66 23.59 34.82 40.49 35.23 40.62 45.86 48.09 40.46 41.57 14.36 5.43 -34.13 47.93 16.70 -5.01 26.06 34.21 14.67 0.27 2.72 5.29 -6.38 4.31 10.73 -0.01 -7.65 10.80 0.73 1.62 -5.40 -3.42 -1.43 -0.06 2.87 21.47 1.64 -7.12 10.06 1.82 0.98 -1.12 -4.94 0.00 0.02 0.47 0.34 0.42 0.33 2.43 5.45 3.74 4.23 0.00 14.36 5.42 -34.59 47.60 16.28 -5.34 23.63 28.76 10.93 -3.96 2.72 0.00 0.01 0.17 0.08 0.15 0.12 0.80 1.94 1.62 1.78 0.00 0.00 1.59 0.31 0.00 0.00 3.02 2.73 6.41 2.84 6.16 0.00 1.01 1.00 1.01 1.00 0.97 0.94 0.90 0.86 0.84 0.84 . -0.13 -0.01 0.51 0.30 0.42 0.33 0.70 0.54 0.47 0.64 . 6 86 8 10 37 74 2 45 6 79 54

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 07-31-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

17.55 -4.91 8.67 3.78 26.06 5.79 6.59 9.27 8.93 34.21 3.14 4.81 -1.74 7.97 14.67 2.79 0.47 -6.32 3.65 0.27

.

142 338

89

98

53

52

74

53

65

60

69

280

174

351

444

355

469

572

679

709

699

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 06-30-16 Total Stocks: 37 Share change since 05-31-16

-1.14 -0.51

— — —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets 18.67 4.92 -7.25 4.66 -2.97 4.37 2.56 3.64 -19.06 3.25 -13.30 3.14 15.27 3.10 -3.86 3.09 30.87 3.07 -20.58 3.05 2.70 3.03 -1.16 3.01 10.73 2.91 41.89 2.65 -7.81 2.54 23.26 2.52 -6.07 2.51

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

International Business Ma

Technology Technology Technology Technology Hlth Care Finan Svcs Basic Mat Hlth Care

1 Yr 3 Yr 5 Yr

-2.27 9.67 14.25 10.26

3 Mo 6 Mo

5.71 -0.62 -0.12 14.01 1.59 0.73 -2.27 -6.62 -7.88 9.67 -3.19 -1.49 14.25 0.63 0.87

51 10,571 6 11,401 73 9,773 65 13,189 4 19,462 6 26,565 33 24,160

Ciena Corp

+Avg QQQ

Avg High High

Micron Technology Inc T Motorola Solutions Inc

High QQQQ High QQQQ

1 Yr

10 Yr Incept

3 Yr Avg 5 Yr Avg

T Allergan PLC

9.91

Y Charles Schwab Corp

10 Yr Avg 10.26 0.76 2.52

T Praxair Inc

Other Measures

Standard Index

Best Fit Index

15 Yr Avg

6.06 0.05 4.18

T CVS Health Corp

Alpha

-2.2 1.11

-1.5 1.08

Pentair PLC

Industrl

Beta

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

T Gilead Sciences Inc

Hlth Care

R-Squared

80

88

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

6.06

75 21 15

3.29 2.49 1.37

85 88 85

Intel Corp

Technology Cnsmr Def

11.40

Standard Deviation

13.73

Y Mondelez International In Patterson Companies Inc Y Applied Materials Inc Whole Foods Market Inc

8.75

Mean

9.67 0.74

Hlth Care

Sharpe Ratio

Technology Cnsmr Def Technology Finan Svcs

Potential Capital Gain Exposure: 5% of assets

Morningstar's Take by Wiley Green 08-01-16 An experienced manager; a proven process; a strong environmental, social, and governance focus; and a record of excellent stock-picking give this fund an edge. It has generated a strong long-term record and benefits from low fees, but succession questions raise a concern. The fund earns a Morningstar Analyst Rating of Bronze. Lead manager and firm founder Jerome Dodson has guided the fund since 1984, and his importance can't be understated. He has built a robust team at Parnassus and has a good track record launching funds and developing managers to run each portfolio. Parnassus Core Equity PRBLX, with a Silver rating, and Parnassus Mid-Cap PARMX exemplify this. But Dodson’s retirement is a possibility, and the additional managers on this fund--Ian Sexsmith, CFA, and Robert Klaber--are untested. Dodson has proved he can run concentrated portfolios and is a top technology analyst, a focus of the fund. Both skills are tough to replace. The team narrows its investable universe using a rigorous ESG research process. Then it invests based on company fundamentals, valuation, and perceived long- term competitive advantages. The resulting portfolio has

Trimble Navigation Ltd American Express Co Thomson Reuters Corp

about 40 stocks, so a few names can have a significant impact on performance. The fund also carries sector- specific risk, having traditionally given an overweighting to technology stocks. But strong stock-picking and a robust process have offset both risks. Parnassus has carved out an attractive niche in the ESG space. In a peer group of socially conscious large- growth and large-blend funds, the firm’s large-cap offerings all appear near the top on Morningstar Sustainability Ratings and near the bottom on fees. All have top-tier long-term performance. There aren’t competitors with similar conviction and portfolio concentration thatcompetewiththe fundsonevery front. The fees on the Institutional shares of Parnassus are competitive even with some socially conscious index funds. This fund has many positives, but Klaber and Sexsmith still need to prove they can fill Dodson’s shoes if he were to retire.

Industrl Industrl

— 2.51 3.46 2.46 — 2.46

Deere & Co

Potash Corp of Saskatchew

Basic Mat

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 28.3 Large 31.8 Mid 26.1 Small 10.9 Micro 3.0 Avg $mil: 23,410

Value Blend Growth

Large Mid Small

31.02 1.07 7.84 2.52 2.45 0.13 18.51 3.82 2.22 0.98 47.15 1.09 0.00 0.00 0.00 0.00 14.70 1.17 32.45 1.26 21.82 0.78 5.89 0.59 15.93 0.89 0.00 0.00

Value Measures

Rel Category

Price/Earnings 17.03

0.75 0.51 0.63 0.57 1.55 0.76 0.97 0.82 1.32 0.58

Price/Book Price/Sales

1.92 1.47

Price/Cash Flow 7.13 Dividend Yield % 2.12

Growth Measures

% Rel Category

Long-Term Erngs 9.07

Book Value

7.35 5.97

Composition - Net

Sales

Cash 5.7 Stocks 94.3 Bonds 0.0 Other 0.0 Foreign 5.3 (% of Stock)

Address:

PARNASSUS FUNDS San Francisco CA 94105

Minimum Purchase: Min Auto Inv Plan:

$2000 Add: $50 IRA: $500

Cash Flow 15.10 Historical Erngs 6.94

$2000 Add: $50

800-999-3505

Sales Fees:

No-load

Web Address:

www.parnassus.com

Management Fee:

0.70% mx./0.60% mn. Mgt:0.62% Dist:—

Profitability

%

Inception:

12-27-84

Actual Fees:

Return on Equity Return on Assets

19.82

Advisor:

Parnassus Investments

Expense Projections: 3Yr:$268 5Yr:$466 10Yr:$1037

6.60

Subadvisor:

None

Income Distribution:

Annually

Net Margin

14.91

A

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