Parnassus Core Equity Fund SM Fourth Quarter 2015 All information, unless otherwise indicated, is as of 12/31/2015 Portfolio Managers Todd C. Ahlsten • Chief Investment Officer, Portfolio Manager • With firm since 1994 • Investment industry since 1994 • Portfolio Manager since 2001 • B.S., Business Administration, University of California, Berkeley 1994 Benjamin E. Allen • Portfolio Manager • With firm since 2005 • Investment industry since 1999 • Portfolio Manager since 2012 • M.B.A., University of California, Berkeley 2005 • B.A., Government, Georgetown University 1999 Firm Overview Parnassus Investments® is an independent and employee-owned investment management company based in San Francisco, CA. Founded in 1984, the firm seeks to invest in businesses that have increasingly relevant products or services, sustainable competitive advantages, quality management teams and ethical business practices.

We believe the most attractive opportunities for investments are when companies with good business fundamentals become temporarily undervalued due to market sentiment. Fund Characteristics Fund S&P 500 Index Ave Weighted Mkt Cap ($Bn) $94.9 $139.5 P/E Ratio 19.8x P/B Ratio Investor Shares Institutional Shares Ticker PRBLX PRILX 19.5x CUSIP 701769101 701769408 3.0x 2.5x Minimum Investment $2,000 $100,000 40 504 Gross Expense Ratio 0.87% 0.67% Portfolio Turnover (2015 Annual) 26.9% - Net Expense Ratio 0.87% 0.67% SEC 30-Day Yield (Investor)1 1.26% - Inception Date 8/31/1992 4/28/2006 Number of Holdings The 30-Day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days. 1 Fund Statistics (5 year) Investor Shares S&P 500 Index Alpha 1.92% - Beta 0.85 1.00 R-Squared 0.91 1.00 Sharpe Ratio 1.23 1.08 10.38% 11.70% Downside Risk 5.73% 6.53% Tracking Error 3.66% - Active Share Average Weighted Market Cap is the average capitalization of all stocks in the portfolio, weighted by each holding’s size in the portfolio. Price/Earnings (P/E) Ratio is a ratio of a stock’s current price to its per-share earnings over the past 12 months (or “trailing” 12 months). Price/Book (P/B) Ratio is the ratio of a stock’s latest closing price divided by its book value per share.

Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1.00 means that the share price moves exactly in line with the market. A beta over 1.00 suggests that the share price will typically be more volatile than the market, and conversely, a beta below 1.00 indicates that the share price will typically be less volatile than the market.

R-Squared is a measurement of how closely the portfolio’s performance correlates with the performance of a benchmark index such as the S&P 500 Index. Standard Deviation is a calculation used to measure Distribution Frequency Quarterly Total Net Assets $11,922.4MM Expenses based on total net assets, net of reimbursement. Standard Deviation Total Assets Under Management: $15.6 billion Fund Facts 86.01% Style - variability (risk) of a portfolio’s performance. Sharpe Ratio is a ratio used to measure risk-adjusted performance.

It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. Downside Risk is a statistical measurement of a portfolio’s dispersion below the mean return of a benchmark. Tracking Error is the standard deviation of the difference between the portfolio return and the desired investment benchmark return.

Active Share measures the percentage amount your portfolio differs from a passive benchmark. The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Parnassus Investments. Copyright © 2014 by S&P Dow Jones Indices LLC, a subsidiary of McGraw-Hill Financial, Inc., and/or its affiliates. All rights reserved.

Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered Parnassus Funds’ equity style box is based on the portfolio’s overall targeted capitalization range and relative valuation. Large Cap Mid Cap Lipper Category: Equity Income Small Cap Value Core Growth trademark of Dow Jones Trademark Holdings LLC.

Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein. Risks: The Fund’s share price may change daily based on the value of its security holdings. Stock markets can be volatile, and stock values fluctuate in response to the asset levels of individual companies and in response to general U.S. and international market and economic conditions. In addition to large-cap companies, the Fund may invest in small- and/ or mid-cap companies, which can be more volatile than large-cap firms.

Security holdings in the fund can vary significantly from broad market indexes. PARNASSUS INVESTMENTS® 1 Market Street, Suite 1600 San Francisco, CA 94105 www.parnassus.com (800) 999-3505 .