PNC Small Cap Fund seeks capital appreciation by primarily investing in stocks of U.S. small-cap companies with market caps matching the benchmark that may possess either value or growth characteristics.  The Fund’s managers invest in companies based upon their Cash Flow Return on Investment (CFROITM).  CFROI is an inflation-adjusted measure of corporate performance that attempts to reduce accounting distortions and allow for more accurate comparisons between companies, different market caps, sectors and industries.  The Fund’s managers believe that CFROI provides a more accurate predictor of future value than other broadly used analysis methods.

  • Identify Ideas: Companies with improving cash flow metrics trading at attractive valuations offer the best opportunities within small caps.
  • Fundamental Research: Companies that continually grow cash flow have similar characteristics. This step of the process builds the backbone for our cash driver estimates and overall investment thesis.
  • Investment Decisions: Investment thesis is based on our fundamental research. Cash flow metrics form the basis of our price drivers. Finally, we create a range of price targets that take into account the current economic environment and any biases that may impact a stock’s potential price.
  • Portfolio Construction: In order to maximize our risk/return and maintain consistency, we construct our portfolios within well-defined risk parameters.

Investment Risk

The market cap range of the benchmark frequently changes.  As a result, the capitalization of companies in which the Fund invests may also change.

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.

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.

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