Parnassus - Workplace Fund

Parnassus Workplace Fund

Objective:

Capital appreciation.

Strategy

The Parnassus Workplace Fund is a diversified, fundamental, U.S., multi-cap, core equity fund. The Fund invests principally in equity securities of companies with outstanding workplaces trading below their intrinsic value. The philosophy behind the Fund is that companies with favorable workplace environments lead to positive-minded employees, better retention and productivity. We conduct our own fundamental research to identify companies that meet our criteria. Additionally, we leverage outside sources such as the annual FORTUNE magazine survey, "The 100 Best Companies to Work For," and the annual Working Mother magazine survey, "The 100 Best Companies for Working Mothers." The Fund also takes environmental, social and governance factors into account in making investment decisions.

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 assets 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.

Ticker	PARWX
CUSIP	701765869
Minimum Investment	$2,000
Gross Expense Ratio	1.25 %
Net Expense Ratio*	1.20 %
Inception Date	4/29/2005
Fund Manager, Since April 2005	Jerome L. Dodson
Fund Strategy	Speciality Multi-Cap Core
Lipper Category	Large-Cap Core
Distribution Frequency	Annually
Total Net Assets	$216MM

* Expenses based on total net assets, net of reimbursement.

Fund Characteristics as of 12/31/11	Fund	S&P 500 Index
Avg. Weighted Mkt. Cap ($Bin) Avg. Weighted Mkt. Cap ($Bin) The average capitalization of all stocks in the portfolio, weighted by each holding's size in the portfolio. Capitalization, or market value of an entire company, is calculated by multiplying the number of shares outstanding by the price per share. Info	$52.3	$96.5
P/E Ratio P/E Ratio A ratio of a stock's current price to its per-share earnings over the past 12 months (or "trailing" 12 months). This gives us an idea of how "expensive" a stock may be. For a fund, the price/earnings ratio is the weighted average P/E ratio of the stocks it holds. Info	13.8x	13.8x
P/B Ratio P/B Ratio The ratio of a stock’s latest closing price divided by its book value per share. Info	2.0x	2.0x
Number of Holdings	36	500
Portfolio Turnover (2011 Annual)	47.2 %	NA

Fund Statistics (5 Year) as of 12/31/11	Fund	S&P 500 Index
Alpha Alpha A coefficient measuring risk-adjusted performance, considering the risk due to the specific security, rather than the overall market. A large alpha indicates that the stock or mutual fund has performed better than would be predicted, given its beta. Info	6.67	0.00
Beta Beta A measurement of a fund's trailing 36-month returns in relation with the market as a whole. A beta of 1 means that the share price moves exactly inline with the market. A beta over 1 suggests that the share price will typically be more volatile than the market, and conversely, a beta below 1 indicates that the share price will typically be less volatile than the market. Info	1.12	1.00
R-Squared R-Squared A measurement of how closely the portfolio's performance correlates with the performance of a benchmark index such as the S&P 500. Info	0.89	1.00
Sharpe Ratio Sharpe Ratio 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. Info	0.21	-0.09
Standard Deviation Standard Deviation A calculation used to measure variability (risk) of a portfolio's performance. Info	22.31 %	18.88 %
Downside Risk Downside Risk A statistical measurement of a portfolio’s dispersion below the mean return of a benchmark. Info	14.08 %	13.89 %
Tracking Error Tracking Error The standard deviation of the difference between the portfolio return and the desired investment benchmark return. Info	7.58 %	NA

The Gross Expense Ratio (before waivers and/or reimbursement by the Adviser) and the Net Expense Ratio (after waivers and/or reimbursement by the Adviser) are as described in the Fund's current prospectus dated May 1, 2011. As described in the prospectus, Parnassus Investments is contractually obliged to limit the total operating expenses to 1.20% through May 1, 2012, for the Parnassus Workplace Fund, exclusive of acquired fund fees. This limitation may be continued indefinitely by the Adviser on a year-to-year basis. Without these fee waivers and/or expense reimbursements, the Fund's returns would have been lower.

The Standard & Poor’s 500 Composite Stock Price Index (also known as “the S&P 500 Index”) is a widely recognized index of common stock prices. An individual cannot invest directly in an index. An index reflects no deductions for fees, expenses or taxes, but mutual fund returns do.

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