Performance Review

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Annualized Performance
as of 12/31/2017
3 MO:6.06%
YTD :14.91%
1 YR:14.91%
3 YRS:7.72%
5 YRS:13.52%
10 YRS:5.80%

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.

Note: On March 31, 2017, PNC Large Cap Value Fund became PNC Multi-Factor Large Cap Value Fund. The Fund's strategies and risks changed as the Fund will now pursue a multi-factor approach. Please see the prospectus for additional information.

PNC Multi-Factor Large Cap Value Fund (class I) returned 6.06% in the fourth quarter versus a return of 5.33% for the benchmark Russell 1000 Value Index.

Growth factors — both price and earnings momentum — continued to show strength during the quarter, while value factors modestly outperformed and stability of earnings factors modestly underperformed. Collectively, these factors led to positive alpha during the quarter. (The excess return of a fund relative to the return of the benchmark is a fund's alpha).

Stock selection contributed to outperformance during the quarter, particularly in the Industrials, Consumer Staples, and Materials sectors. Sector allocation contributed to relative performance with the underweight to the Real Estate, Utilities, and Health Care sectors contributing the most.

Overall, U.S. equity markets continued to rise during the fourth quarter, seeming to shrug off concerns over continuing geopolitical tensions and instead focusing on the positives of tax reform, solid economic growth, and strong corporate earnings. Revised tax policy legislation was a particular focus, as the new law is anticipated to be favorable to U.S. corporations. The Tax Cuts and Jobs Act not only lowers the federal corporate statutory tax rate, it also allows companies to repatriate overseas cash at more favorable tax rates.

This late-cycle fiscal stimulus comes at a time of economic strength in the U.S., as third-quarter 2017 GDP increased at a seasonally adjusted annual rate of 3.2%. Fourth-quarter GDP is forecast to also increase above 3%. With this generally positive macro backdrop, the fundamental earnings growth picture also looked quite strong. Third-quarter earnings grew 6.7% year over year, which was not as strong as the double-digit earnings growth in the prior two quarters, but still positive.

Company earnings are showing an acceleration that the investment team has not seen since 2011. The trend started in the third quarter of 2016 and continued throughout 2017. Earnings forecasts indicate a continuation of this trend throughout 2018. With trailing price-earnings ratios at relatively high levels the Fund's managers feel the earnings story will have to be the driver of future price movement, which the market clearly saw in 2017. They see no reason to believe our investment thesis of price appreciation driven by accelerated earnings growth (tempered by above-average valuations, with lower correlations between stocks and driven by stock-specific data) should not continue and may actually strengthen into 2018.

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.


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 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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