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Balanced Allocation FundPBLIXShare Class
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investment strategy / process

The PNC Balanced Allocation Fund seeks long-term capital appreciation and current income.  Using a top-down approach to asset allocation, the Fund’s managers use proprietary models to determine broad market and sector allocations, while drawing on the team’s expertise to find the best investment opportunities in each marketplace.  The fund intends to invest 45% to 75% of its net assets in equity securities, 25% to 55% in fixed income senior securities and up to 30% in cash, cash equivalent securities and short-term money market instruments.  The Fund may also invest up to 25% of its total assets at the time of purchase in foreign securities and may include investing in emerging market securities. The Fund may invest in companies with stock market capitalizations of at least $100 million.

Investment Risks

Asset allocation cannot guarantee a profit or prevent a loss. 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. High yield bond investing includes special risks.  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 values of mortgage-backed securities depend on the credit quality and adequacy of the underlying assets or collateral and may be highly volatile.  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. 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.  Investments in small and mid capitalization companies present a greater risk of loss than investments in large companies. 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.