Summary

• Parnassus Core Equity Fund (Investor Shares) returned -6.17% (net of fees) during the quarter, underperforming the S&P 500 Index's -4.33%.
• Our holdings in the Health Care sector hurt performance, along with a lack of exposure to the Energy and Utilities sectors. On the upside, holdings in the Industrials and Consumer Discretionary sectors buoyed relative results.
• We have not made any event-driven positioning shifts in response to the geopolitical conflicts in the Middle East as we continue to pursue downside mitigation while remaining open to compelling opportunities.
• We continuously review our position sizes and valuations in response to evolving risk/reward opportunities.
• We remain committed to our disciplined investment process, seeking increasingly relevant, competitively advantaged businesses at attractive valuations with the goal of creating enduring value for our investors.

Market Review

The S&P 500 Index faced a volatile first quarter, shaped by escalating geopolitical tensions and a spike in oil prices related to the conflict in Iran, which supported Energy and defense stocks. Despite the uncertainty, the

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