PNC Tax Exempt Limited Maturity Bond Fund is managed through a team-driven, top-down process utilizing active state selection and strategy, with extensive credit research and portfolio analysis to mitigate risk. The Fund seeks to provide high current income, while seeking to conserve capital by investing in investment-grade municipal obligations - or unrated securities of equal caliber - that pay interest exempt from federal income tax. The dollar-weighted average maturity of the fund is expected to remain within one and five years.
An investment in the Fund is subject to interest rate risk, which is the possibility that a Fund's yield will decline due to falling interest rates and the potential for bond prices to fall as interest rates rise. For some investors, income may be subject to state and/or local taxes, and certain investors may be subject to the federal Alternative Minimum Tax (AMT). Economic or political changes may impact the ability of municipal issuers to repay principal and interest payments on securities of the Fund, which may adversely impact the Fund’s shares. The Fund may be subject to call risk, which is the risk of a bond being called prior to maturity. High yield bond investing includes special risks. The values of mortgage-backed securities depend on the credit quality and adequacy of the underlying assets or collateral and may be highly volatile. Investments in lower rated and unrated debt securities are subject to a greater loss of principal and interest than investments in higher rated securities. The Fund may be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.