Performance Review

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Annualized Performance
as of 9/30/2017
3 MO:5.56%
YTD :13.28%
1 YR:16.46%
3 YRS:9.81%
5 YRS:12.20%
10 YRS:5.53%

On March 31, 2017 the Multi-Factor All Cap Fund changed its strategy which will now pursue a multi-factor approach and will no longer have a policy to invest 80% of its net assets plus any borrowings for investment purposes in equity securities issued by large-cap companies.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.

For Benchmark information click here

The views expressed in this investment report represent the opinions of PNC Capital Advisors, LLC and are not intended to predict or depict performance of any investment. All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. The information herein was obtained by various sources; we do not guarantee its accuracy or completeness. Fund performance quoted above is for class I shares. Past performance does not guarantee future results. These views are as of the date of this publication and are subject to change based on subsequent developments.

Investments in value companies can continue to be undervalued for long periods of time and be more volatile than the stock market in general. Investments in growth companies can be more sensitive to the company's earnings and more volatile than the stock market in general. International investments are subject to special risks not ordinarily associated with domestic investments, including currency fluctuations, economic and political change and differing accounting standards that may adversely affect portfolio securities. These risks may be heightened
in emerging markets.

Note: On March 31, 2017, PNC Large Cap Core Fund became PNC Multi-Factor All Cap Fund. The Fund's strategy and risks changed as the Fund will now pursue a multi-factor approach and will no longer have a policy to invest 80% of its net assets plus any borrowings for investment purposes in equity securities issued by large-cap companies. Please see the prospectus for additional information.

PNC Multi-Factor All Cap Fund (class I) returned 5.64% in the third quarter versus a return of 4.57% for the Russell 3000 Index.

In the market, value factors struggled for most of the quarter, with an improvement during the last few weeks in September. Earnings disappointments drove underperformance, but earnings beats did not drive as much alpha as the investment team typically observes. (The excess return of a fund relative to the return of the benchmark is a fund’s alpha). Small-cap stocks outperformed large-cap stocks during the quarter, which was a reversal of the trend the market witnessed year to date. Growth stocks continued to lead value stocks among both large-caps and small-caps, despite value outperforming growth for the month of September.


The investment team’s multi-factor model and momentum factors–both price and earnings–continued to showed strength which led to positive alpha during the quarter. Additionally, it appeared that earnings disappointments drove the market more than earnings beats and a portion of the Fund's outperformance came from having fewer disappointments than the broader market.

For the Fund, stock selection was the main contributor to outperformance during the quarter, with holdings in the Consumer Discretionary, Information Technology, and Health Care sectors contributing the most. Sector allocation overall was a detractor from relative performance, with the overweight to Consumer Discretionary detracting the most and the underweight to Consumer Staples contributing the most.

The market environment in the third quarter was favorable to the Fund team’s investment process. In fact, the Fund’s managers saw clear positive signs from their multi-factor model with their momentum factors showing definitive strength. Their belief remains that earnings drive stock prices, especially over the long run, and they remain confident in their process as they progress through the remainder of 2017 and beyond.


On March 31, 2017, PNC Large Cap Core Fund became PNC Multi-Factor All Cap Fund. The Fund's strategy and risks changed as the Fund will now pursue a multi-factor approach and will no longer have a policy to invest 80% of its net assets plus any borrowings for investment purposes in equity securities issued by large-cap companies. Please see the prospectus for additional information.

Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Select a Fund to view the most recent month-end performance information or go to each fund's snapshot page to view most recent month-end performance as well as any waiver or expense reimbursement information.

The information contained in this piece should not be considered legal or tax advice; questions regarding your specific situation should be directed to your legal or tax advisor.

NOT FDIC INSURED | NO BANK OR FEDERAL GOVERNMENT GUARANTEE | MAY LOSE VALUE

You should consider the investment objectives, risks, charges, and expenses of the PNC Funds carefully before investing. A prospectus or summary prospectus with this and other information may be obtained at 800-622-FUND (3863) or pncfunds.com. Please read it carefully before investing.

PNC Capital Advisors, LLC, a subsidiary of The PNC Financial Services Group Inc., serves as investment adviser and co-administrator to PNC Funds and receives fees for its services. PNC Funds are distributed by PNC Funds Distributor, LLC, which is not affiliated with the adviser and is not a bank.

This site shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of shares of the PNC Funds in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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