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High Yield Bond FundPIHBXShare Class
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investment strategy / process

The PNC High Yield Bond Fund is managed by combining a team-driven, bottom-up security selection process with a top-down risk management overlay. The Fund seeks to provide a high level of current income together with capital appreciation by investing in a diversified portfolio of high yield, high risk debt securities, including Corporate debt securities, mortgage-backed securities and asset-backed securities of U.S. and Canadian issuers. The Fund’s duration (its sensitivity to interest rate changes) is managed to plus/minus 20% maximum relative to its benchmark, the Barclays U.S. Corporate High-Yield 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 the potential for bond prices to fall as interest rates rise. 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. If a bond is sold before its maturity date, it may be worth more or less than the face value depending on interest rate movements. The value of assets may decline as inflation shrinks the value of a country's currency. A bond may be difficult to sell in a thin trading market or if it is relatively unknown. 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. These risks may be heightened in emerging markets. 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.