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Small Cap Core FundPPCIXShare Class
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investment strategy / process

The PNC Small Cap Core Fund seeks capital appreciation by investing in a diversified portfolio of publicly traded small cap U.S. equity securities with market caps matching the benchmark^ that possess both value and growth characteristics.  The Fund’s managers invest in companies based upon their Cash Flow Return on Investment (CFROI®).  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.

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





 1. Identify
ideas		 2. Analyze the factors affecting future cash flow 3. Forecast cash flow drivers 4. Construct Portfolio
 
  • Market capitalizations matching the benchmark
  • Average daily trading $750,000
  • Increasing cash flow or >20% upside potential
  • Turnaround events
  • Historical accuracy
 
  • Management strength and commitment
  • Financial strength
  • Market position
  • Industry outlook
  • Cash utilization
 
  • Sales
  • Margins
  • Asset utilization
  • Fade rate
  • Discount rate
  • Target price
  • >20% upside potential
  • Fully invested
  • Single security <5%
  • Sector weighting: max +10%


Investment Risk

Investments in small capitalization companies present greater risk of loss than investments in large companies due to greater volatility and less liquidity.

*Sector weightings and top ten holdings are subject to change, for illustrative purposes only and are not a permanent reflection of the fund.