Performance Review

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Annualized Performance
as of 3/31/2018
3 MO:0.74%
YTD :0.74%
1 YR:13.63%
3 YRS:6.00%
5 YRS:10.23%
10 YRS:10.02%

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 small-capitalization companies present greater risk of loss than investments in large companies. 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 Small Cap Fund (class I)1 returned 0.75% in the first quarter versus a return of -0.08% for the benchmark Russell 2000 Index.

In the broader market, the first quarter of 2018 started off quietly enough, with corporate executives and investors excited about the business windfall that elements of the Tax Cut and Jobs Act is expected to provide. But volatility picked up throughout the quarter, as investors tried to interpret the potential implications of protectionist rhetoric that came from the White House.

The Russell 2000 Index pulled back close to 10% from the end of January through mid-February, but rebounded to end the quarter down marginally. Most of the other major, domestic equity indices, outside of the technology-laden NASDAQ Index, also ended the quarter slightly in negative territory.

From a style perspective, the Russell 2000 Growth Index handily outperformed the Russell 2000 Value Index in the first quarter. Within the Russell 2000 Index, for the quarter, the Information Technology, Health Care, and Financials sectors posted positive returns, while all of the other sectors were in negative territory, with the Energy sector falling by double digits.


For the Fund, at the end of the first quarter, the investment team's largest overweight was to Industrials, followed by Consumer Discretionary and Financials. Within Industrials, the Fund's overweight was concentrated in professional services, aerospace and defense, and building products companies. The Fund's managers' focus within Consumer Discretionary is on the auto components, household durables, and specialty retail industries. Financials included an overweight to consumer finance, insurance, and capital markets companies.

The Fund's largest sector underweights were in Health Care and Information Technology. Health Care investments consisted of a provider of staffing services to hospitals and health-care facilities and a food and animal safety testing products company. While the biotechnology and pharmaceutical industries made up over half the Health Care weight in the Russell 2000 Index, the Fund didn't have any exposure to those industries, as those types of companies typically don't fit within the Fund's managers investment philosophy and process.

Information Technology investments were mainly in the software, services, and electronic equipment industries, with no exposure to the semiconductor and communications equipment groups. Finally, the Fund did not have exposure to the Energy, Consumer Staples, Telecommunication Services, or Utilities sectors.


1Effective May 17, 2018, PNC Small Cap Fund reopened to new investors.

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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