Parnassus Investments LLC

Item 5 - Fees and Compensation

Parnassus Investments provides investment advisory services to the Parnassus Funds and
separate accounts. Parnassus also provides investment advisory and sub-advisory services to
other accounts, as described in Item 4.

Parnassus Funds Investment Company Fees
Parnassus Investments charges advisory fees based on a percentage of net assets. Advisory fees
are subject to review and approval by the Funds’ Boards of Trustees and are set forth in the
Funds’ prospectus. Fees are payable monthly for the previous month.

Separate Account Fee Schedule
Parnassus Investments’ current fee schedule for separately managed account clients is based on a
percentage of assets under management, as follows:

                                                               ANNUAL           MINIMUM
                   STRATEGY NAME                                RATE           ANNUAL FEE

  Parnassus Core Equity
  Of the first $200 million in assets                            0.40%             $100,000
  Of the amount above $200 million up to $400 million            0.35%
  Of the amount above $400 million in assets                     0.30%
  Parnassus Growth Equity
  Of the first $200 million in assets                            0.40%             $100,000
  Of the amount above $200 million up to $400 million            0.35%
  Of the amount above $400 million in assets                     0.30%

Parnassus Investments
Form ADV, Part 2A

                                                               ANNUAL            MINIMUM
                   STRATEGY NAME                                RATE            ANNUAL FEE

  Parnassus Value Equity
  Of the first $200 million in assets                            0.40%             $100,000
  Of the amount above $200 million up to $400 million            0.35%
  Of the amount above $400 million in assets                     0.30%

  Parnassus Mid-Cap Equity
  Of the first $200 million in assets                            0.45%             $112,500
  Of the amount above $200 million up to $400 million            0.40%
  Of the amount above $400 million in assets                     0.35%
  Parnassus Mid-Cap Growth Equity
  Of the first $200 million in assets                            0.45%             $112,500
  Of the amount above $200 million up to $400 million            0.40%
  Of the amount above $400 million in assets                     0.35%

  Parnassus International Equity
  Of the first $200 million in assets                            0.50%             $125,000
  Of the amount above $200 million up to $400 million            0.45%
  Of the amount above $400 million in assets                     0.40%

Parnassus Investments reserves the right to negotiate fees at its discretion. Parnassus
Investments may agree to different fees than those shown above depending on factors such as
investment objectives and restrictions, the nature of the client relationship, the length of time of
the relationship, the size of the account and other factors. We also reserve the right to aggregate
accounts for purposes of applying the breakpoints in the above fee schedule.

The separate account minimum is $25,000,000, although Parnassus Investments reserves the
right to waive the minimum at its discretion.

The specific manner in which separate account fees are charged by Parnassus Investments is
established in the client agreement. Clients are generally billed in arrears each calendar quarter.
Clients may elect to be billed directly for fees or to authorize Parnassus Investments to
automatically debit fees from client accounts. Upon termination of an account, any earned,
unpaid fees will be due and payable.

Model Services
The fees charged for Model Services provided to financial institutions are negotiated in
consideration of the type of services that Parnassus Investments is required to perform.
Parnassus Investments is generally paid an annualized investment advisory fee based on the total
underlying client assets which are managed on the basis of the model portfolio(s) provided under
the Model Services arrangement.

UCITS (Undertakings for Collective Investment in Transferable Securities)
Parnassus Investments serves as the adviser delegate of certain sub-funds of investment

Parnassus Investments
Form ADV, Part 2A

companies authorized in France under the UCITS regulations. The UCITS are not offered to U.S.
persons. Fees are set forth in the UCITS sub-fund’s prospectus.

Collective Investment Trust Fund
Parnassus Investments serves as the investment adviser to a collective investment trust (“CIT”)
for which an independent trustee serves as manager. The fee schedule is set forth in the CIT’s
disclosure document.

Other Clients
The fees Parnassus Investments charges for services to other managed accounts vary depending
on the level of assets and services provided.

Other Fees
Clients incur additional fees outside of Parnassus Investments’ fees, including brokerage
commissions, transaction fees, and other related costs and expenses. Please see Item 12 –
“Brokerage Practices,” for more information on these types of fees. Clients may incur certain
charges imposed by custodians, brokers, third party investment managers and other third parties
such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange-traded funds (ETFs) also
charge internal management fees and other expenses, which are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to Parnassus Investments’
fee. Neither Parnassus Investments nor its personnel receive any portion of these commissions,
fees and costs or any other compensation for the sale of the Funds or other investment products.

Item 7 - Types of Clients

Overview
Parnassus Investments provides investment advice to investment companies, business entities,
pension and profit-sharing plans, charitable organizations and other separately managed
accounts, as well as to Model Services program sponsors and to other financial services firms.
Parnassus Investments also provides advisory services to a CIT, European UCITS funds and
other pooled investment vehicles sponsored by unaffiliated financial institutions.

Conditions for Managing Accounts
Please see Item 5 for the account minimum for separately managed accounts. Minimum
investment amounts for Model Services programs and other accounts sponsored by third-party
firms are available from the sponsor.

Parnassus Investments
Form ADV, Part 2A