investment strategy / process
The PNC Multi-Factor Small Cap Core Fund seeks capital appreciation by investing primarily in stocks of small cap companies with market caps matching the benchmark that possess both value and growth characteristics. Using an analytical process together with fundamental research methods, the Fund’s managers rate the performance potential of companies and buys those stocks that it believes offer the best prospects for superior performance relative to the securities of comparable companies. Stock selection is based upon sound scientific evidence and three key drivers of future performance: valuation, fundamentals and investor interest.
In selecting securities, the Fund’s managers integrate both growth and valuation considerations, focusing on companies with potential for above-average earnings, sales and asset value growth. Additionally, the Fund’s managers buy those securities considered to be attractively valued relative to the securities of comparable companies. Lastly, the team assesses a company’s prospects for growth by reviewing and analyzing purchase candidates individually.
Investment Risk
The market cap range of the benchmark frequently changes. As a result, the capitalization of companies in which the Fund invests may also change.
Investments in small capitalization companies present greater risk of loss than investments in large companies. 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. To the extent that the Fund invests a significant portion of its assets in a particular industry, the fund's performance could depend heavily on the performance of that industry and may be more volatile than less concentrated funds. The portfolio team may choose to invest in initial public offerings (IPOs), the performance of which is unpredictable and the effect of which may not be duplicated during periods in which the Fund does not invest in IPOs.