Summary

• The Parnassus Mid Cap Fund (Investor Shares) returned -2.35% (net of fees) for the quarter, underperforming the Russell Midcap Index's 1.29% return.
• Parnassus Mid Cap Fund performance was hampered by holdings in the Industrials, Materials and Health Care sectors, along with lack of exposure to the Energy sector.
• In the first quarter, Parnassus Mid Cap Fund took advantage of market volatility to upgrade the portfolio with companies the fund views as stronger growth prospects.
• Equity markets reversed course in the first quarter of 2026, as early optimism surrounding the ongoing megatrend in AI and easier monetary policy yielded to geopolitical shocks and tighter financial conditions.
• Parnassus Mid Cap Fund remains disciplined, fundamentals-driven investors focused on durable businesses at reasonable valuations in the pursuit of strong long-term returns.

Key Takeaways

• The Fund (Investor Shares) returned -2.35% (net of fees) for the quarter, underperforming the Russell Midcap Index's 1.29% return.
• Fund performance was hampered by our holdings in Industrials, Materials and Health Care, as well as

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