PNC Funds Logo
Masthead

High Yield Bond FundPIHBXShare Class
select

select

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 PNC High Yield Bond Fund is subject to certain risks: Interest Rate Risk - 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. Credit Risk - the financial risk that the issuer will not be able to repay the principal upon maturity as promised. Market Risk - the risk that 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. Inflation Risk - the risk that the value of assets may decline as inflation shrinks the value of a country’s currency. Liquidity Risk - the risk that 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.

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