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Parnassus Mid Cap Fund

Investor Shares

Objective:

Capital appreciation.

Strategy

The Parnassus Mid Cap Fund invests with low turnover and high conviction in approximately 40 holdings. The Fund seeks to invest in companies with:

  • Wide moats or strong competitive advantages that protect market share and profitability
  • Relevancy over the long term, which provides a compounding growth component
  • Quality management teams that will act in the best interest of shareholders
  • Favorable three-year investment horizon

The Fund strives to outperform the Russell Mid Cap Index over the long-run on a risk-adjusted basis with a high active share. The Fund attempts to shield investors from losses during bear markets.

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. Security holdings in the fund can vary significantly from broad market indexes.

The Fund invests in the stocks of small and mid-cap companies, which are generally riskier than larger companies, and the Fund’s share price may be more volatile than funds that invest in larger companies.

Fund Facts

Ticker PARMX
CUSIP 701765885
Minimum Investment $2,000
Gross Expense Ratio 1.01 %
Net Expense Ratio* 0.99 %
Inception Date 4/29/2005
Fund Managers,
Since October 2008
Since October 2008

Matthew D. Gershuny
Lori A. Keith
Fund Strategy Mid-Cap Core
Lipper Category Mid-Cap Core
Distribution Frequency Annually
Share Class Assets $1,841MM
Total Net Assets1 $2,398MM

Change Share Class: View Institutional Shares

Institutional Shares
Institutional Shares are generally for institutional investors and have a minimum investment of $100,000. Institutional Shares are available to investors who invest directly in the Fund as well as those who invest through certain intermediaries. The minimum initial investment may be waived for group retirement plans. Please see the prospectus for more details.

Investor Shares
Investor Shares are generally for individual investors have a minimum investment of $2,000, which may be reduced to $500 for IRAs and certain custodial accounts. Please see the prospectus for more details.

Info
Fund Characteristics as of 3/31/17 Fund Russell Midcap 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.

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$15.8 $14.0
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.

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23.3x 22.5x
P/B Ratio

P/B Ratio
The ratio of a stock’s latest closing price divided by its book value per share.

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3.6x 2.6x
Number of Holdings 41 794
Portfolio Turnover (2016 Annual) 18.8 % NA
Fund Statistics (5 Year) as of 3/31/17 Fund Russell Midcap 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.

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2.01 % 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.

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0.81 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.

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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.

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1.34 1.19
Standard Deviation

Standard Deviation
A calculation used to measure variability (risk) of a portfolio's performance.

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12.78 % 13.09 %
Downside Risk

Downside Risk
A statistical measurement of a portfolio’s dispersion below the mean return of a benchmark.

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5.11 % 6.12 %
Tracking Error

Tracking Error
The standard deviation of the difference between the portfolio return and the desired investment benchmark return.

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3.83 % NA

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

As described in the Fund’s current prospectus dated May 1, 2017, Parnassus Investments has contractually agreed to limit total operating expenses to 0.99% of net assets for the Parnassus Mid Cap Fund—Investor Shares. This agreement will not be terminated prior to May 1, 2018, and may be continued indefinitely by the Adviser on a year-to-year basis. The net expense ratio is what investors pay.

1Total net assets represent the combined assets of Institutional Shares and Investor Shares.

The Russell Midcap 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.

The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% threeyear rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Parnassus Mid Cap Fund was rated against the following numbers of Mid Cap Blend Funds over the following time periods: 377 funds in the last three years, 340 funds in the last five years, and 219 funds in the last ten years. Past performance is no guarantee of future results. Morningstar Rating is for the Investor class only; other classes may have different performance characteristics.