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Government Mortgage FundPTGIXShare Class
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investment strategy / process

The PNC Government Mortgage Fund is managed through a team-driven, top-down process utilizing active sector rotation, relative valuation analysis and prudent risk management. The Fund seeks to provide current income, as well as preservation of capital by investing at least 80% of the Fund's assets in securities issued or guaranteed by agencies, authorities, instrumentalities or sponsored enterprises of the U.S. government as well as obligations issued or guaranteed by the U.S. government.  The dollar-weighted average maturity of the Fund is expected to remain within three to ten years. The Fund's duration (its sensitivity to interest rate changes) is managed to plus/minus 20% maximum relative to its benchmark index, the Barclays Fixed Rate Mortgage-Backed Securities Index.

Investment Risk

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 yielding, non-investment grade bonds present a greater risk of loss to principal and interest than investment grade securities. The value of debt securities may be affected by the ability of issuers to make principal and interest payments and even the possibility that the issuer will default completely. Although U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies and instrumentalities are backed by the U.S. Treasury. Obligations issued by other agencies (such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Association and the Federal Home Loan Bank) are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. No assurance can be given that the U.S. government will provide financial support to these agencies.