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Overview Portfolio Strategy / Process Performance Team Fees

investment strategy / process

The PNC Michigan Intermediate Municipal 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 current income, while preserving capital by investing in investment-grade - or unrated of equal caliber - debt securities issued by the state of Michigan, its political subdivisions, agencies or instrumentalities.  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 expected to remain within 10% of its benchmark index, the Barclays 7-year Municipal Bond 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 bond fund prices may decline 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).  As of June 30, 2009, the Fund does not invest in securities subject to the Alternative Minimum Tax. However, the Fund's managers maintain the option to change the Fund's composition by investing the Fund's assets in such securities.

Capital gains are subject to federal, state and local taxes. The Funds focus on investments in securities located in a single state makes the fund susceptible to economic, political and regulatory events that affect that state. This fund is non-diversified, which means that it may invest in securities of relatively few issuers. As a result, the Fund may be more susceptible than a diversified fund to a single adverse economic or political and regulatory occurrence affecting one or more issuers. 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 Funds shares.

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

NOT FDIC INSURED  |  NO BANK OR FEDERAL GOVERNMENT GUARANTEE  |  MAY LOSE VALUE

You should consider the investment objectives, risks, charges and expenses of the PNC Funds carefully before investing. A prospectus may be downloaded and viewed with this and other information about the Funds or may be obtained by contacting an investment professional or by calling 1-800-622-FUND (3863). Please read it carefully before you invest or send money.

PNC Capital Advisors, LLC, a subsidiary of The PNC Financial Services Group Inc., serves as investment adviser and co-administrator to PNC Funds and receives fees for its services. Shares of PNC Funds are distributed by Professional Funds Distributor, LLC (PFD), 760 Moore Road, King of Prussia, PA 19406. PFD is not affiliated with PNC and is not a bank.

©2010 The PNC Financial Services Group, Inc. All rights reserved.