Fund Fact Sheet
Parnassus Workplace Fund
Parnassus Funds Quarterly Report: September 30, 2011
As of September 30, 2011, the NAV of the Parnassus Workplace Fund was $18.04, resulting in a loss of 16.09% for the third
quarter. This compares to a loss of 13.87% for the S&P 500 Index ("S&P 500") and a loss of 15.06% for the Lipper Large-Cap
Core Average, which represents the average large-cap core fund followed by Lipper ("Lipper average"). For the year-to-date,
the Workplace Fund lost 13.31%, compared to a loss of 8.69% for the S&P 500 and a loss of 10.63% for the Lipper average.
Below is a table comparing the Workplace Fund with the S&P 500 and the Lipper average for the past one-, three- and fiveyear
periods, as well as the period since inception. You can see from the table that the Fund lags its benchmarks for the
one-year period, but is substantially ahead of its benchmarks for the three- and five-year periods and for the period since
inception.
Performance data quoted represent past performance and are no guarantee of future returns.
Current performance may be lower or higher than the performance data quoted. Current
performance information to the most recent month-end is available on the Parnassus website
(www.parnassus.com). Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original principal cost.
Returns shown in the table do not reflect the deduction of taxes a shareholder may pay on fund
distributions or redemption of shares. The S&P 500 Index is an unmanaged index of common
stocks, and it is not possible to invest directly in an index. Index figures do not take any
expenses, fees or taxes into account, but mutual fund returns do. Before investing, an investor
should carefully consider the investment objectives, risks, charges and expenses of the Fund and
should carefully read the prospectus, which contains this and other information. The prospectus
is available on the Parnassus website, or one can be obtained by calling (800) 999-3505. As
described in the Fund's current prospectus dated May 1, 2011, Parnassus Investments has
contractually agreed to limit the total operating expenses to 1.20% of net assets, exclusive of
acquired fund fees, until May 1, 2012. This limitation may be continued indefinitely by the
Adviser on a year-to-year basis.
Company Analysis
The stock that hurt the Workplace Fund the most was Hewlett-Packard, which cut 44¢ off the NAV as it sank 38.3% from
$36.40 to $22.45. See the comments in the Parnassus Fund section to get my views on the company.
Brocade Communications swooned 33.1% during the quarter from $6.46 to $4.32 for a loss of 32¢ for each fund share. See
the comments in the Small-Cap Fund section for my take on the company.
SEI Investments manages assets and provides technology to investment managers such as Parnassus Investments. The stock
plunged 31.7% during the quarter from $22.51 to $15.38, while chopping 30¢ off each fund share. Most of the company's revenue comes from fees earned for managing and
administering assets, so the falling equity markets
reduced earnings and the stock suffered. The
company is also incurring heavy expenses to build
its new service called the Global Wealth Platform.
Corning dropped 31.9% during the quarter from
$18.15 to $12.36, reducing the NAV by 28¢. The
company makes most of its profits by selling
special glass for computer screens or highdefinition
television sets. Manufacturers have
reduced their orders for special glass, because they
expect weaker demand for monitors and
television sets.
Parnassus Workplace Fund Portfolio of Investments as of 9/30/2011
First Horizon cost the Fund 24¢, because its stock dropped 37.5% from
$9.54 to $5.96. See the comments in the Small-Cap Fund section for my
take on the company.
Yours truly,
Jerome L. Dodson
Portfolio Manager
The information above represents the Letter from Parnassus Investments, management's
discussion and analysis of fund performance, and Responsible Investing Notes as
excerpted from the Report. Please click on the "Full Report" link above to
view the Report in its entirety.