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International Equity FundPIUIXShare Class
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investment strategy / process

The PNC International Equity Fund seeks long-term capital appreciation by primarily investing in equity securities that are tied economically to a number of countries throughout the world.  Using a unique multi-manager approach, the Fund’s assets are allocated between value, core and growth strategies, and are managed by the Fund’s adviser (PNC Capital Advisors, LLC) and sub-advisers (GE Asset Management and Polaris Capital Management).  The Fund is currently allocated 40% to PNC's international growth team, 40% to the Polaris Capital Management value team and 20% to the GE Asset Management core team.

The Fund invests in equity securities tied economically to a number of countries throughout the world.  It limits investments in securities of issuers in countries with developing markets to no more than 25% of the Fund’s total assets.  More than 25% of the Fund’s assets may be invested in the equity securities of issuers located in the same country.

Value Process
  • Employs a proprietary five-factor global model to rank countries and industries on attractiveness.
  • Identifies companies with undervalued streams of sustainable cash flows.
  • Performs fundamental analysis to determine future cash flows and risk of investment.
  • Diversified portfolio with exposure to 15 or more countries and industries.   
 Core Process
  • The international equity universe is refined through initial screens including fundamental and valuation factors, investement themes and liquidity.
  • Valuation analysis is driven by analysts estimates of price/cash earnings, cash earnings growth and yield.
  • Qualitative analysis is based on a blend of factors rolled in one comparable score.
  • Diversified portfolio of the best names with risk controls at the region, sector and individual stock levels, as well as risk statistic ranges.   
  Growth Process
  • Begins by using a proprietary 12-factor model to determine companies with strong sustainable earnings and accelerating revenue growth.
  • Country allocation framework guides portfolio towards stocks in countries exhibiting reasonable valuations, low risk and strong economic growth.
  • Fundamental review confirms outputs at security and country levels.
  • Portfolio managed within pre-defined risk guidelines which ensure diversification across countries, sectors and securities. 



Investment Risk

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.  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.  The Fund may invest a portion of its assets in derivatives. Derivative instruments include options, futures and options on futures. A small investment in derivatives could have a potentially large impact on the Fund’s performance.  The Fund may be unable to terminate or sell a derivatives position. Derivative counterparties may suffer financial difficulties and may not fulfill their contractual obligations.