Performance Review

Download PDF

Annualized Performance
as of 6/30/2018
3 MO:-0.21%
YTD :0.00%
1 YR:11.03%
3 YRS:7.28%
5 YRS:11.21%
10 YRS:7.24%

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.

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.

PNC Multi-Factor All Cap Fund (Class I) returned 0.65% in the second quarter versus a return of 3.89% for the Russell 3000 Index.

Growth factors were positive during the first two months of the quarter; however, momentum weakened significantly during the month of June. At the same time, the Fund saw price reversal begin to work. Value factors were consistently weak throughout the quarter, declining further from an already low starting point. Quality factors, as defined by the proprietary stability of earnings factor, were relatively neutral overall during the beginning of the quarter. However, weakness during the month of June led to quality underperforming for the quarter. Collectively, these factors detracted from relative investment results.

The Fund’s overweight to smaller-cap stocks contributed to relative investment results, as small-caps generally outperformed large-caps during the quarter. However, stock selection detracted overall from relative results.

Stock selection was the main detractor from relative results, with holdings in the Consumer Discretionary, Information Technology, Energy, Materials, and Financials sectors detracting the most, partially offset by contributions from holdings in the Industrials, Consumer Staples, and Health Care sectors.

Sector allocation also detracted from relative results, with the Fund’s overweight to the Industrials sector and underweight to the Information Technology and Energy sectors detracting the most, partially offset by contributions from the overweight to Consumer Discretionary sector and the underweight to the Consumer Staples sector.


U.S. equity markets ended the second quarter in positive territory, as there were many positive data points for equity investors to focus on. First quarter 2018 earnings growth, reported during the second quarter, for the S&P 500 Index was 25.4%, the highest it’s been since 2010. Nine of the 11 GICS sectors saw double-digit earnings growth. Furthermore, companies in the S&P 500 had record positive earnings surprises, with the Information Technology sector having the highest proportion of companies with positive earnings surprises at 90%.

However, investors’ focus seemed to shift back and forth from optimism about companies’ positive fundamental stories to concern about a range of macro headwinds: further Federal Reserve monetary policy tightening contributed to a stronger dollar and higher interest rates; heightened trade tariff rhetoric raised concerns about an increasing possibility of a global trade war; rising energy costs and the attendant impact on the supply chains of companies across multiple industries rippled through markets; and various geopolitical issues, including the execution of Brexit and political uncertainty in the European Union, stirred up additional uncertainty.

Despite the current macro backdrop, the investment team believes the fundamental earnings growth outlook for companies in their investment universe looks quite strong. Second quarter 2018 earnings growth for the S&P 500 is forecasted to be 20.0%, which if reached, would result in three consecutive quarters of double-digit annual earnings growth. Additionally, it would mark the second-highest quarterly earnings growth result since the third quarter of 2010.


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.

© The PNC Financial Services Group, Inc. All rights reserved.

Powered by SySys.