UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number         811-04416            

                         PNC Funds                            

(Exact name of Registrant as specified in charter)

One East Pratt Street – 5^th Floor

                                 Baltimore, MD 21202                                

(Address of principal executive offices) (Zip code)

Delaware Corporations LLC

800 Delaware Avenue

                             Wilmington, Delaware 19801                                

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-622-3863

Date of fiscal year end:  May 31

Date of reporting period:  May 31, 2016

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A Registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A Registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Annual Report to Shareholders is attached herewith.

PNC MONEY MARKET FUNDS ANNUAL REPORT

MONEY MARKET FUNDS

Government Money Market Fund

Tax Exempt Money Market Fund

Treasury Money Market Fund

Advantage Institutional Treasury     Money Market Fund

OTHER PNC FUNDS

TARGET DATE FUNDS

Retirement Income Fund

Target 2020 Fund

Target 2030 Fund

Target 2040 Fund

Target 2050 Fund

EQUITY FUNDS

Balanced Allocation Fund

International Equity Fund

International Growth Fund

Large Cap Core Fund

Large Cap Growth Fund

Large Cap Value Fund

Mid Cap Fund

Mid Cap Index Fund

Multi-Factor Small Cap Core Fund

Multi-Factor Small Cap Growth Fund

Multi-Factor Small Cap Value Fund

S&P 500 Index Fund

Small Cap Fund

Small Cap Index Fund

FIXED INCOME FUNDS

Bond Fund

Government Mortgage Fund

High Yield Bond Fund

Intermediate Bond Fund

Limited Maturity Bond Fund

Total Return Advantage Fund

Ultra Short Bond Fund

TAX EXEMPT BOND FUNDS

Intermediate Tax Exempt Bond Fund

Maryland Tax Exempt Bond Fund

Ohio Intermediate Tax Exempt Bond Fund

Tax Exempt Limited Maturity Bond Fund

T A B L E   O F  C O N T E N T S

Letter to Shareholders	1
Abbreviations and Definitions for Schedules of Investments and Financial Statements	4
Summary of Portfolio Holdings/Yields	6
Expense Tables	8
Trustees and Officers of the Trust	9
Report of Independent Registered Public Accounting Firm	11
	Financial Highlights	Schedule of Investments
Government Money Market Fund	12		16
Tax Exempt Money Market Fund	13		20
Treasury Money Market Fund	14		24
Advantage Institutional Treasury Money Market Fund	15		26
Statements of Assets and Liabilities			28
Statements of Operations			32
Statements of Changes in Net Assets			34
Notes to Financial Statements			36
Notice to Shareholders			45

This material must be preceded or accompanied by a prospectus.

You should consider the investment objectives, risks, charges and expenses of the PNC Money Market Funds (individually, a “Fund”, collectively, the “Funds”) carefully before investing. A prospectus and other information about the Funds may be obtained by calling your investment professional, calling 1-800-622-FUND (3863) or downloading one at pncfunds.com. Please read it carefully before investing.

NOT FDIC INSURED ● NO BANK GUARANTEE ● MAY LOSE VALUE

PNC Capital Advisors, LLC (“PCA”), a subsidiary of The PNC Financial Services Group, Inc., serves as investment adviser and co-administrator to PNC Funds and PNC Advantage Funds and receives fees for its services. PNC Funds and PNC Advantage Funds are distributed by PNC Funds Distributor, LLC (the “Underwriter”), Three Canal Plaza, Suite 100, Portland, ME 04101. The Underwriter is not affiliated with PCA and is not a bank.

^©2016 The PNC Financial Services Group, Inc. All rights reserved.

An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.

P N C  M o n e y   M a r k e t  F u n d s

L E T T E R  T O  S H A R E H O L D E R S

Dear Shareholders:

We are pleased to present this annual report for PNC Money Market Funds for the twelve months ended May 31, 2016 (the “annual period”).

Please note that on June 4, 2015, the Funds’ Boards of Trustees approved an agreement and plan of reorganization pursuant to which PNC Advantage Institutional Government Money Market Fund, a money market fund organized under a separate trust and managed by PNC Capital Advisors, LLC (the “Adviser”), would be reorganized with and into PNC Government Money Market Fund. The closing date of the reorganization was September 14, 2015.

Also, on February 25, 2016, the Funds’ Boards of Trustees approved plans of liquidation for each of PNC Money Market Fund, PNC Tax Exempt Money Market Fund and PNC Advantage Money Market Fund. PNC Money Market Fund and PNC Advantage Money Market Fund were liquidated on May 25, 2016. PNC Tax Exempt Money Market Fund was liquidated on June 8, 2016.

Further, in connection with the July 2014 amendments to Rule 2a-7 under the Investment Company Act of 1940 (the “Amended Rule”), which is the primary rule governing the operation of money market funds, during the annual period, deadlines passed for money market fund managers to be compliant with certain requirements of the Amended Rule. PNC Money Market Funds are in compliance with these requirements which include reporting defined “material events” as applicable on a new Securities and Exchange Commission (“SEC”) form, complying with new diversification and stress-testing requirements, reporting information on a Fund’s website pertaining to fund liquidity and shareholder inflows and outflows, and incorporating new disclosure into registration statements and advertisements. On September 16, 2015, the SEC adopted additional amendments to Rule 2a-7 which remove references to credit ratings of NRSROs from the definition of “eligible security” and codify certain general factors to be considered in assessing credit risk. PNC Money Market Funds intend to be compliant with these amendments by October 14, 2016 as required. Lastly, the Adviser intends to manage PNC Government Money Market Fund, PNC Treasury Money Market Fund and PNC Advantage Institutional Treasury Money Market Fund, so that on and after October 14, 2016, each will qualify as a “government money market fund” under the Amended Rule enabling each to continue to seek to maintain a stable net asset value (“NAV”) per share of one dollar.

Before reviewing the financial statements and schedules of investments of your individual mutual fund investments, it may be useful to take a brief look at the major factors affecting the economy and the money markets during the annual period.

Economic Review

Volatility heightened in the capital markets during the annual period, as global economic growth struggled. For much of the annual period, global Gross Domestic Product (“GDP”) growth in the advanced economies remained uneven. Accommodative monetary policies in developed countries helped to stabilize economic and financial conditions, with growth of combined developed economies in the 1% to 2% range. But several emerging markets were under stress from weak commodity prices causing decelerating growth, current account deficits, currency depreciation and inflation. Economic weakness exacerbated political stress in both developed and emerging markets.

“Volatility heightened in the capital markets...as global economic growth struggled.”

Commentary provided by PNC Capital Advisors, LLC as of May 31, 2016

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L E T T E R  T O  S H A R E H O L D E R S

“Yields in the taxable and tax-exempt money markets remained extremely low...”

Commentary provided by PNC

Capital Advisors, LLC as of

May 31, 2016

U.S. GDP growth in 2015 was 2.0% but then rose just 1.1% during the first quarter of 2016. However, second quarter 2016 GDP was projected to be between 2.0% and 2.5% due to strong housing data and stronger consumption. The U.S. labor market was strong by most metrics for much of the annual period, but then faltered a bit from March through May 2016. The U.S. unemployment rate fell to 4.7%, although that decline was mainly attributable to a decline in labor force participation. Such softness in the U.S. labor market, including in non-farm payroll increases, tempered the Federal Reserve’s (the “Fed”) path toward interest rate normalization. At the end of the annual period, the then most-recent Fed projections showed interest rates increasing at a slower pace in 2017 and 2018 compared to its projections from March 2016. While there is a potential chance the Fed will raise short-term rates over the next few months, it appears the Fed may wait until much later in 2016 before the next incremental increase in the federal funds rate. Following the June 23, 2016 decision by U.K. voters to leave the European Union (“Brexit”), the federal funds futures market was barely pricing in an increase by December 2016, and, remarkably, a greater chance of a cut during the second half of 2016.

Money Markets

Yields in the taxable and tax-exempt money markets remained extremely low throughout the annual period. Central bank policy divergence and economic data were dominant themes affecting the money markets. As the annual period began in June 2015, data suggested that U.S. economic activity had picked up during the second quarter of 2015 after a weak first quarter. At its June 2015 meeting, the Fed hinted that U.S. interest rates were still on track to rise later in 2015, despite lowering its growth and inflation forecast slightly. Still, a shift lower in Fed officials’ predictions of interest rate levels signaled a slight delay in the timing of hikes. During the third quarter of 2015, the broad market consensus was that in determining the timing for policy tightening, the Fed was likely to focus on cumulative progress toward full employment rather than short-term data reports. The Fed signaled its inclination to begin normalizing policy even if inflationary pressures remained low. It thus came as a surprise to many that the Fed chose to keep its targeted federal funds rate unchanged at its September 2015 meeting.

Given its economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Fed finally decided to raise the target range for the federal funds rate to 0.25% to 0.50% at its December 2015 meeting. The Fed indicated that its monetary policy stance remained accommodative after the increase but also suggested that, dependent on data, it might implement four additional rate hikes, in a gradual manner, during 2016.

As the new year began, the financial markets were volatile amid persistent global economic growth concerns. The Fed left interest rates unchanged during January 2016, with its subsequent policy statement slightly dovish. In the statement, the Fed downgraded its near-term inflation outlook, expressed concern about global economic conditions and noted slowing housing and inventory investment. The money markets, which already had lowered expectations for Fed monetary action, priced out the possibility of a rate hike in March 2016. During February 2016, the Fed focused primarily on the labor market, inflation expectations and financial conditions. At its March 2016 meeting, the Fed lowered its projections for GDP and inflation and moved its interest rate increase projections closer to market expectations of no more than two more rate hikes for 2016, a stance it maintained at its April 2016 meeting. In all, the Fed kept the targeted federal funds rate unchanged during the first five months of 2016.

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L E T T E R  T O  S H A R E H O L D E R S

Our View Ahead

We expect U.S. GDP growth to remain between 2.0% and 2.5% during 2016. We expect global economic activity to remain more sluggish. Many of the economic themes from 2015 are likely to persist through much of 2016, in our view, both domestically and internationally. More specifically, developed economies are essentially in a slow growth mode due to demographics, debt and fiscal policy restraints. Monetary policy has been the sole source of economic stimulus. That said, diverging monetary policies, growth in the Chinese economy, and the Brexit vote are likely to contribute to volatility in the capital markets. In addition, U.S. dollar fluctuations may drive capital flows. Meanwhile, developing economies have been hit with concerns about China’s transition from an industrial to a service-based economy and, as a result, about the country’s diminishing demand for raw materials. Vigilance remains paramount. After the close of the annual period, Fed Chair Yellen noted during Congressional testimony that investors’ risk appetite may change abruptly and added that Brexit could have “significant economic consequences”.

Meanwhile, the money market industry continues preparations to comply with the Amended Rule, with final reform requirements effective on October 14, 2016. Fund families continue to respond to regulatory reforms with changes to their product line-up, which will impact their ultimate post reform money market fund offerings, in the form of fund consolidations, repositionings, liquidations and launches. We expect no further changes to the PNC Money Market Fund offering as a result of reform requirements.

We believe relative safety, diversification and liquidity will likely remain important and ongoing considerations for investors in the money markets. We therefore continue to believe that money market funds will continue to play a key role in investors’ portfolios.

We thank you for being a part of the PNC Money Market Funds and for maintaining a long-term perspective as a basic tenet of your investment approach. We value your ongoing confidence in us and look forward to serving your investment needs in the years ahead.

Best Regards,

Mark McGlone	Jennifer E. Spratley
President and Chief Investment Officer	President
PNC Capital Advisors, LLC	PNC Funds
	PNC Advantage Funds

This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to PNC Funds and PNC Advantage Funds, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and PNC Capital Advisors, LLC undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of PNC Funds and PNC Advantage Funds’ trading intent.

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P N C  M o n e y  M a r k e t  F u n d s

A B B R E V I A T I O N S  A N D  D E  F I N I T I O N S  F O R  S C H E D U L E S  O F I N V E S T M E N T S  A N D  F I N A N C I A L  S T A T E M E N T S

Schedules of Investments:

BAN — Bond Anticipation Note

DN — Discount Note. The rate shown is the effective yield at purchase date.

FRN —   Floating Rate Note. The rate shown is the rate in effect on May 31, 2016, and the date shown is the final maturity date, not the next reset or put date. The rate floats based on a predetermined index.

GO — General Obligation

LLC — Limited Liability Company

LOC — Letter of Credit

PLC — Public Limited Company

RB — Revenue Bond

SBPA — Standby Bond Purchase Agreement

VRDN — Variable Rate Demand Note. The rate shown is the rate in effect on May 31, 2016, and the date shown is the next reset or put date.

Financial Statements:

— Amounts designated as “ — ” are either zero or rounded to zero.

See Notes to Financial Statements.

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P N C  M o n e y  M a r k e t  F u n d s

S U M M A R Y  O F  P O R T F O L I O  H O L D I N G S / Y I E L D S  ( U n a u d i t e d )

The tables below present portfolio holdings as of May 31, 2016 as a percentage of total investments for each of the PNC Money Market Funds.

Government Money Market Fund
Federal Home Loan Bank	29.5	%
Repurchase Agreements	22.0
Federal Farm Credit Bank	12.1
Federal Home Loan Mortgage Corpration	11.2
Federal National Mortgage Association	10.7
U.S. Treasury Notes	6.1
U.S. Treasury Bills	5.6
Money Market Funds	2.8
	100.0	%
Tax Exempt Money Market Fund
Refunding Bonds	44.5	%
Hospital/Nursing Home Revenue Bonds	15.5
Education Revenue Bonds	13.2
General Obligations	12.7
Other Revenue Bonds	4.9
Transportation Revenue Bonds	3.8
Anticipation Notes	2.9
Industrial/Development Revenue Bonds	1.0
Water/Sewer Revenue Bonds	0.7
Public Facilities Revenue Bonds	0.6
Utility Revenue Bonds	0.2
	100.0	%

Treasury Money Market Fund
U.S. Treasury Notes	47.7	%
U.S. Treasury Bills	46.0
Money Market Funds	6.3
	100.0	%
Advantage Institutional Treasury Money Market Fund
Repurchase Agreements	44.1	%
U.S. Treasury Bills	32.6
U.S. Treasury Notes	19.5
Money Market Fund	3.8
	100.0	%

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The yields in the tables below represent the annualization of the Fund’s declared dividends over the seven-day period ended May 31, 2016.

Current Yield is a measure of a Fund’s yield earned if dividends are paid in cash and are not reinvested. Effective Yield is a measure of a Fund’s yield that assumes that all dividends were reinvested in additional Fund shares instead of being paid in cash.

	7-Day Current Yields as of May 31, 2016
	Class I		Class A		Advisor Class
Fund	Net	Unsubsidized*	Net	Unsubsidized*	Net	Unsubsidized*
Government Money Market Fund	0.08%	0.08%	0.08%	0.08%	0.07%	0.04%
Tax Exempt Money Market Fund	0.04%	(0.01)%	0.03%	(0.02)%	0.03%	(0.02)%
Treasury Money Market Fund	0.07%	0.07%	0.07%	0.07%	–	–
	7-Day Effective Yields as of May 31, 2016
	Class I		Class A		Advisor Class
Fund	Net	Unsubsidized*	Net	Unsubsidized*	Net	Unsubsidized*
Government Money Market Fund	0.08%	0.08%	0.08%	0.08%	0.07%	0.04%
Tax Exempt Money Market Fund	0.04%	(0.01)%	0.04%	(0.01)%	0.04%	(0.01)%
Treasury Money Market Fund	0.07%	0.07%	0.07%	0.07%	–	–
	7-Day Current Yields as of May 31, 2016
	Institutional Shares		Advisor Shares		Service Shares
Fund	Net	Unsubsidized*	Net	Unsubsidized*	Net	Unsubsidized*
Advantage Institutional Treasury Money Market Fund	0.05%	0.05%	0.00%**	0.00%**	0.00%**	0.00%**
	7-Day Effective Yields as of May 31, 2016
	Institutional Shares		Advisor Shares		Service Shares
Fund	Net	Unsubsidized*	Net	Unsubsidized*	Net	Unsubsidized*
Advantage Institutional Treasury Money Market Fund	0.05%	0.05%	0.01%	0.01%	0.01%	0.01%

* Unsubsidized Yield reflects the yield without fee waivers and expense reimbursements in effect.

** Net assets at May 31, 2016 were comprised solely of seed capital of $10. Ratios for the seven-day period rounded to 0.00%.

Performance quoted represents past performance and does not guarantee future results. Investment return will fluctuate, so current performance may be higher or lower than shown here. Current performance data is available at pncfunds.com.

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E X P E N S E    T A B L E S    (U n a u d i t e d)

The expenses shown in the Expense Tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would be higher.

The “Annualized Expense Ratio” reflects the actual expenses net of fee waivers, where applicable, for the six-month period December 1, 2015 to May 31, 2016 and may be different from the expense ratio in the Financial Highlights which is for the fiscal year ended May 31, 2016.

⁽¹⁾Expenses are equal to each Class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) in the most recent fiscal half-year, then divided by 366.

⁽²⁾ Assumes annual return of 5% before expenses.

All mutual funds have operating expenses. As a shareholder of a Fund, you incur operating expenses, including investment advisory fees, distribution (12b-1) and shareholder services fees, where applicable, and other Fund expenses. Such expenses, which are deducted from a Fund’s gross income, directly reduce the investment return of a Fund. A Fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The Expense Tables provided below are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the six-month period shown and held for the entire six-month period (December 1, 2015 to May 31, 2016).

The Expense Table that appears for your Fund illustrates your Fund’s costs in two ways.

• Actual Expenses. This section helps you to estimate the actual expenses after fee waivers that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Class of a Fund under the heading “Expenses Paid During Period.”

• Hypothetical Example for Comparison Purposes. This section is intended to help you compare your Fund’s costs with those of other mutual funds. It is based on your Fund’s actual expense ratio and assumes that your Fund had an annual return of 5% before expenses during the period shown. In this case — because the return used is not your Fund’s actual return — the results may not be used to estimate your actual ending account value or expenses you paid during this period. The example is useful in making comparisons between your Fund and other funds because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on an annual 5% return. You can assess your Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

	Beginning	Ending			Expenses
	Account	Account		Annualized	Paid
	Value	Value		Expense	During
	12/01/15	05/31/16		Ratio	Period(1)
Government Money Market Fund
Actual
Class I	$1,000.00	$	1,000.37	0.24%	$1.21
Class A	1,000.00		1,000.36	0.24	1.18
Advisor Class	1,000.00		1,000.36	0.23	1.15
Hypothetical(2)
Class I	1,000.00		1,023.80	0.24	1.22
Class A	1,000.00		1,023.82	0.24	1.19
Advisor Class	1,000.00		1,023.85	0.23	1.16
Tax Exempt Money Market Fund
Actual
Class I	$1,000.00		$1,000.21	0.13%	$0.63
Class A	1,000.00		1,000.21	0.12	0.61
Advisor Class	1,000.00		1,000.21	0.12	0.59
Hypothetical(2)
Class I	1,000.00		1,024.38	0.13	0.63
Class A	1,000.00		1,024.39	0.12	0.62
Advisor Class	1,000.00		1,024.41	0.12	0.60

	Beginning	Ending			Expenses
	Account	Account		Annualized	Paid
	Value	Value		Expense	During
	12/01/15	05/31/16		Ratio	Period(1)
Treasury Money Market Fund
Actual
Class I	$1,000.00	$	1,000.19	0.22%	$1.10
Class A	1,000.00		1,000.19	0.22	1.10
Hypothetical(2)
Class I	1,000.00		1,023.91	0.22	1.11
Class A	1,000.00		1,023.91	0.22	1.11
Advantage Institutional Treasury Money Market Fund
Actual
Institutional Shares	$1,000.00		$1,000.17	0.22%	$1.12
Advisor Shares	1,000.00		1,000.16	0.22	1.12
Service Shares	1,000.00		1,000.16	0.22	1.12
Hypothetical(2)
Institutional Shares	1,000.00		1,023.89	0.22	1.13
Advisor Shares	1,000.00		1,023.89	0.22	1.13
Service Shares	1,000.00		1,023.89	0.22	1.13

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T R U S T E E S   A N D   O F F I C E R S  OF  T H E  T R U S T

Name, Address1 Age	Position(s) Held with the Trust	Term of Office and Length of Time Served2	Principal Occupation(s) During Past 5 Years	Number of Portfolios in the Fund Complex Overseen by Trustee3	Other Directorships held by Trustees During Past 5 Years4
Independent Trustees
Dorothy A. Berry 72	Trustee	Since April 2006	Retired; President, Talon Industries, Inc. (administrative, management and business consulting), 1986-2012; Chairman, Independent Directors Council, 2010-2011.	2 registered investment companies consisting of 34 portfolios	Chairman and Director, Professionally Managed Portfolios; Trustee, Allegiant Funds until 2010.
John G. Drosdick 72	Trustee Chairman of the Board and Nominating Committee	Since November 2010 Since June 2011	Retired; Chairman, Chief Executive Officer and President, Sunoco, Inc. (manufacturer and marketer of petroleum and petrochemical products), 1996-2008.	2 registered investment companies consisting of 34 portfolios	Director, United States Steel Corporation (steel producer); Director, H.J. Heinz Company (U.S.-based food company) until June 2013; Director, Lincoln Financial Corporation (financial services) until 2005; Director, Triumph Group Inc. (aerospace manufacturer).
Dale C. LaPorte 74	Trustee	Since April 2005	Retired; Senior Vice President and General Counsel, Invacare Corporation (manufacturer of healthcare products), 2005-2008; Partner, 1974 – 2005, and Chairman of Executive Committee, 2000 – 2004, of Calfee, Halter & Griswold LLP (law firm).	2 registered investment companies consisting of 34 portfolios	Director, Invacare Corporation; Trustee, Allegiant Funds until 2010.
L. White Matthews, III 70	Trustee Chairman of the Audit Committee	Since February 2010 From June 2011 to February 2012	Retired; Chief Financial Officer, Ecolab Inc., 1999-2001; Chief Financial Officer, Union Pacific Corporation, 1989-1998; Director and Chairman of the Board of Constar International Inc. (bottles and packaging manufacturer), 2009-2014; Retired; Chairman and Director, Ceridian Corporation (payroll and human resources services), 2003- 2007.	2 registered investment companies consisting of 34 portfolios	Director, Hyla Inc. (cellphone recycler); Director, Matrixx Initiatives, Inc.(pharma-   ceuticals) until 2011; Director, PNC Funds, Inc. until 2010; Director (since 2003) and Chairman of the Board of (publicly traded) Imation Corp. (data storage) until May 2015.
Edward D. Miller, Jr. 73	Trustee	Since February 2010	Retired; Dean and Chief Executive Officer, Johns Hopkins Medicine, January 1997 to June 2012.	2 registered investment companies consisting of 34 portfolios	Director, Care Fusion (healthcare devices); Director, EnGenelC Ltd. (biopharma-   ceuticals) since January 2016; Director, NantHealth, Inc. (healthcare solutions) since January 2016; Director, PNC Funds, Inc. until 2010.
Stephen M. Todd 68	Trustee Chairman of the Audit Committee	Since November 2011 Since February 2012	Retired; Global Vice Chairman – Assurance Professional Practice, Ernst & Young London, UK (accounting firm), 2003 - 2010.	2 registered investment companies consisting of 34 portfolios	Director, Dover Corporation (diversified multi-national manufacturing company); Trustee, Ancora Trust (registered investment company) until 2011.

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T R U S T E E S  A N D  O F F I C E R S  O F  T H E  T R U S T

Name, Address Age	Position(s) Held with the Trust	Term of Office and Length of Time Served2	Principal Occupation(s) During Past 5 Years	Number of Portfolios in the Fund Complex Overseen by Trustee3	Other Directorships held by Trustees During Past 5 Years4
Officers
Jennifer E. Spratley One East Pratt Street, 5th Floor Baltimore, MD 21202 47	President Vice President	Since June 2014 From March 2010 to June 2014	Managing Director and Head of Fund Administration, PNC Capital Advisors, LLC (formerly PNC Capital Advisors, Inc.) since 2007; Treasurer, PNC Capital Advisors, Inc., September 2007 – September 2009; Unit Leader, Fund Accounting and Administration, SEI Investments Global Funds Services 2005 to 2007; Fund Accounting Director, SEI Investments Global Funds Services 1999 to 2007.	N/A	N/A
Michael Nanosky 1900 East 9th Street, 15th Floor Cleveland, OH 44114 50	Chief Compliance Officer	Since December 2014	Chief Compliance Officer, PNC Funds since 2014; Vice President, Head of Compliance Testing and Monitoring, PNC Capital Advisors, LLC 2010-2014; Chief Compliance Officer, PNC Capital Advisors, LLC and PNC Realty Investors, Inc., 2010-2011; Chief Compliance Officer, CITI Fund Services, 2008-2010.	N/A	N/A
John F. Kernan 1900 East 9th Street, 14th Floor Cleveland, OH 44114 50	Vice President Treasurer Assistant Treasurer	Since June 2016 Since May 2008 From February 2005 to May 2008	Managing Director and Director of Financial Fund Administration, PNC Capital Advisors, LLC (formerly Allegiant Asset Management Company), since July 2004; Senior Director of Fund Administration, State Street Bank and Trust Company, 1998 – 2004.	N/A	N/A
Thomas R. Rus One East Pratt Street, 5th Floor Baltimore, MD 21202 56	Secretary	Since February 2015	Director of Regulatory Fund Administration, PNC Capital Advisors, LLC since February 2015; Chief Compliance Officer, Institutional Shareholder Services Inc. 2014-2015; Chief Compliance Officer, Kroll Bond Rating Agency, Inc. 2010-2014; Vice President, Chief Compliance Officer and Assistant Secretary, MTB Investment Advisors, Inc. and MTB Funds, 2003-2010.	N/A	N/A

¹Each Trustee can be contacted by writing to PNC Funds, c/o PNC Capital Advisors, LLC, One East Pratt Street, 5th Floor, Baltimore, MD 21202, Attention: Thomas R. Rus.

²With respect to the term of office for each Trustee of the Trust, the Trustees have adopted a retirement policy in which each will retire at the calendar year end in the year in which he/she reaches the age of 75 years old. With respect to the term of office for each officer of the Trust, pursuant to the Trust’s By-Laws any officer may be removed by the Board at any regular or special meeting of the Board or the extent permitted by the Board, by the President. In addition, any Trustee or officer may resign at any time by giving written notice to the Trust. Such resignation shall be effective upon receipt, unless specified to be effective at some later time.

³The “Fund Complex” is comprised of two registered investment companies for which PCA or any of its affiliates serves as investment adviser. The number of portfolios overseen by the Trustees includes the PNC Funds (thirty-three portfolios) and the PNC Advantage Funds (one portfolio).

⁴Includes directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended (i.e., “public companies”), or other investment companies registered under the 1940 Act.

For more information regarding the trustees and officers, please refer to the Statement of Additional Information, as supplemented, which is available, without charge, upon request by calling 1-800-622-FUND (3863).

10

P N C   M o n e y   M a r k e t   F u n d s

R E P O R T  O F  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C  A C C O U N T I N G  F I R M

To the Shareholders of PNC Government Money Market Fund, PNC Tax Exempt Money Market Fund, and PNC Treasury Money Market Fund and Board of Trustees of PNC Funds and to the Shareholders of PNC Advantage Institutional Treasury Money Market Fund and Board of Trustees of PNC Advantage Funds

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of PNC Government Money Market Fund, PNC Tax Exempt Money Market Fund, and PNC Treasury Money Market Fund (the “Money Market Funds”) (three of the thirty-three funds comprising PNC Funds) as of May 31, 2016, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of PNC Advantage Institutional Treasury Money Market Fund (the fund comprising PNC Advantage Funds) (collectively with the Money Market Funds, the “Funds”) as of May 31, 2016, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers and transfer agents, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds as of May 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Philadelphia, Pennsylvania

July 28, 2016

11

P N C  M o n e y  M a r k e t  F u n d s   F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a  t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M  a y  3 1 , u n l e s s  o t h e r w i s e  i n d  i c a t e d

	Government Money Market Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net Investment Income†		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Realized and Unrealized Gain (Loss) on Investments		–			–	*		–			–	*		–			–	*		–	*		–			–	*		–
Total from Investment Operations		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Dividends from Net Investment Income		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Distributions from Net Realized Gains		–			–			–			–			–			–			–			–			–			–
Total Distributions		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Net Asset Value, End of Year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		0.05	%		0.03	%		0.01	%		0.01	%		0.02	%		0.05	%		0.03	%		0.01	%		0.01	%		0.02	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	4,776,561		$	720,219		$	738,100		$	809,229		$	960,513		$	361,440		$	321,524		$	133,915		$	79,789		$	109,523
Ratio of Expenses to Average Net Assets		0.19	%		0.07	%		0.07	%		0.15	%		0.12	%		0.16	%		0.06	%		0.02	%(1)		0.15	%		0.12	%
Ratio of Net Investment Income to Average Net Assets		0.06	%		0.02	%		0.01	%		0.01	%		0.01	%		0.05	%		0.02	%		0.06	%(1)		0.01	%		0.01	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.27	%		0.35	%		0.36	%		0.36	%		0.35	%		0.28	%		0.35	%		0.36	%		0.36	%		0.35	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.02	)%		(0.26	)%		(0.28	)%		(0.20	)%		(0.22	)%		(0.07	)%		(0.27	)%		(0.28	)%		(0.20	)%		(0.22	)%
	Government Money Market Fund
	Advisor Class
	2016(2)
Net Asset Value, Beginning of Year								$  1.00
Net Investment Income†								–*
Realized and Unrealized Gain (Loss) on Investments								–
Total from Investment Operations								–*
Dividends from Net Investment Income								–*
Distributions from Net Realized Gains								–
Total Distributions								–*
Net Asset Value, End of Year								$  1.00
Total Return								0.05%
Ratios/Supplemental Data
Net Assets End of Year (000)								$  875
Ratio of Expenses to Average Net Assets								0.18%
Ratio of Net Investment Income to Average Net Assets								0.05%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)								0.25%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)								(0.02)%

* Amount represents less than $0.005 per share.

† Per share data calculated using average shares outstanding method.

⁽¹⁾ During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment represented a 0.05% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

⁽²⁾ Advisor Class Shares commenced operations on September 14, 2015. All ratios for the period have been annualized. Total return for the period has not been annualized.

See Notes to Financial Statements.

12

P N C  M o n e y   M a r k e t  F u n d s   F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a  t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M  a y  3 1 , u n l e s s  o t h e r w i s e  i n d  i c a t e d

	Tax Exempt Money Market Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year		$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00
Net Investment Income†		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Realized and Unrealized Gain (Loss) on Investments		–	*		–	*		–			–	*		–			–	*		–	*		–			–	*		–
Total from Investment Operations		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Dividends from Net Investment Income		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Distributions from Net Realized Gains
Total Distributions		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Net Asset Value, End of Year		$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00			$    1.00
Total Return		0.03	%		0.02	%		0.02	%		0.02	%		0.02	%		0.03	%		0.02	%		0.02	%		0.02	%		0.03	%
Ratios/Supplemental Data
Net Assets End of Year (000)		$246,465			$350,855			$419,054			$509,879			$531,409			$25,411			$48,443			$39,591			$42,426			$37,249
Ratio of Expenses to Average Net Assets		0.08	%		0.05	%		0.06	%		0.14	%		0.12	%		0.08	%		0.05	%		0.07	%(1)		0.14	%		0.11	%(2)
Ratio of Net Investment Income to Average Net Assets		0.03	%		0.02	%		0.02	%		0.02	%		0.02	%		0.03	%		0.02	%		0.02	%(1)		0.02	%		0.03	%(2)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.31	%		0.30	%		0.31	%		0.31	%		0.30	%		0.31	%		0.30	%		0.31	%		0.31	%		0.30	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.20	)%		(0.23	)%		(0.23	)%		(0.15	)%		(0.16	)%		(0.20	)%		(0.23	)%		(0.22	)%		(0.15	)%		(0.16	)%
	Tax Exempt Money Market Fund
	Advisor Class
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year		$    1.00			$    1.00			$    1.00			$    1.00			$    1.00
Net Investment Income†		–	*		–	*		–	*		–	*		–	*
Realized and Unrealized Gain (Loss) on Investments		–	*		–	*		–	*		–	*		–	*
Total from Investment Operations		–	*		–	*		–	*		–	*		–	*
Dividends from Net Investment Income		–	*		–	*		–	*		–	*		–	*
Distributions from Net Realized Gains		–			–			–			–			–
Total Distributions		–	*		–	*		–	*		–	*		–	*
Net Asset Value, End of Year		$    1.00			$    1.00			$    1.00			$    1.00			$    1.00
Total Return		0.03	%		0.02	%		0.02	%		0.02	%		0.02	%
Ratios/Supplemental Data
Net Assets End of Year (000)		$169,349			$153,640			$123,104			$120,542			$29,378
Ratio of Expenses to Average Net Assets		0.08	%		0.05	%		0.07	%		0.13	%		0.12	%
Ratio of Net Investment Income to Average Net Assets		0.03	%		0.02	%		0.02	%		0.02	%		0.02	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.31	%		0.30	%		0.31	%		0.31	%		0.30	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.20	)%		(0.23	)%		(0.22	)%		(0.16	)%		(0.16	)%

* Amount represents less than $0.005 per share.

† Per share data calculated using average shares outstanding method.

⁽¹⁾ During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A. This voluntary commitment had no impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders.

⁽²⁾ During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which had no impact to Class A ratios.

See Notes to Financial Statements.

13

P N C  M o n e y   M a r k e t  F u n d s   F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a  t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M  a y  3 1 , u n l e s s  o t h e r w i s e  i n d  i c a t e d

	Treasury Money Market Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year		$        1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00
Net Investment Income†		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Realized and Unrealized Gain (Loss) on Investments		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Total from Investment Operations		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Dividends from Net Investment Income		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Distributions from Net Realized Gains		–	*		–	*		–	*		–	*		–	*		–	*											–
Total Distributions		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Net Asset Value, End of Year		$        1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00			$      1.00
Total Return		0.03	%		0.02	%		0.02	%		0.01	%		0.01	%		0.03	%		0.02	%		0.02	%		0.01	%		0.01	%
Ratios/Supplemental Data
Net Assets End of Year (000)		$1,215,072			$225,196			$214,348			$289,839			$326,694			$138,150			$144,448			$173,571			$120,798			$83,704
Ratio of Expenses to Average Net Assets		0.15	%		0.02	%		0.04	%		0.08	%		0.04	%		0.13	%		0.02	%		0.03	%(1)		0.08	%		0.04	%
Ratio of Net Investment Income to Average Net Assets		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.02	%(1)		0.01	%		0.01	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.31	%		0.37	%		0.36	%		0.37	%		0.36	%		0.32	%		0.37	%		0.36	%		0.37	%		0.36	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.14	)%		(0.34	)%		(0.31	)%		(0.28	)%		(0.31	)%		(0.17	)%		(0.34	)%		(0.31	)%		(0.28	)%		(0.31	)%

* Amount represents less than $0.005 per share.

† Per share data calculated using average shares outstanding method.

⁽¹⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment represented a 0.01% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

14

P N C  M o n e y   M a r k e t  F u n d s   F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a  t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M  a y  3 1 , u n l e s s  o t h e r w i s e  i n d  i c a t e d

	Advantage Institutional Treasury Money Market Fund
	Institutional Shares															Advisor Shares															Service Shares
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net Investment Income†		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Realized and Unrealized Gain (Loss) on Investments		–			–	*		–			–	*		–			–	*		–	*		–			–	*		–			–	*		–	*		–			–	*		–
Total from Investment Operations		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Dividends from Net Investment Income		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Distributions from Net Realized Gains		–			–			–			–			–			–			–			–			–			–			–			–			–			–			–
Total Distributions		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*		–	*
Net Asset Value, End of Year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	453,917		$	112,304		$	174,871		$	115,062		$	111,735		$	–	(1)	$	34,829		$	10,980		$	8,412		$	3,619		$	–	(1)	$	3,401		$	1,601		$	2,711		$	11,149
Ratio of Expenses to Average Net Assets		0.17	%		0.05	%		0.05	%		0.12	%		0.08	%		0.16	%		0.05	%		0.05	%		0.13	%		0.07	%		0.10	%		0.05	%		0.05	%		0.14	%		0.09	%
Ratio of Net Investment Income to Average Net Assets		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.24	%		0.28	%		0.26	%		0.28	%		0.30	%		0.25	%		0.29	%		0.27	%		0.29	%		0.32	%		0.26	%		0.29	%		0.27	%		0.29	%		0.31	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.05	)%		(0.22	)%		(0.20	)%		(0.15	)%		(0.21	)%		(0.07	)%		(0.23	)%		(0.21	)%		(0.15	)%		(0.24	)%		(0.14	)%		(0.23	)%		(0.21	)%		(0.14	)%		(0.21	)%

* Amount represents less than $0.005 per share.

† Per share data calculated using average shares outstanding method.

⁽¹⁾  At May 31, 2016, net assets of the Advisor and Service Shares represented seed capital.

See Notes to Financial Statements.

15

P N C  G o v e r n m e n t  M o n e y  M a r k e t  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
U.S. GOVERNMENT AGENCY OBLIGATIONS — 64.7%
Federal Farm Credit Bank — 12.4%
Federal Farm Credit Bank
0.550%, 07/01/16 (FRN)	$	37,500	$	37,508
0.464%, 08/26/16 (FRN)		4,980		4,980
0.429%, 09/19/16 (FRN)		10,000		10,000
0.530%, 12/14/16 (FRN)		10,000		10,000
0.493%, 04/20/17 (FRN)		25,000		25,006
0.436%, 05/25/17 (FRN)		40,000		40,000
0.559%, 09/14/17 (FRN)		18,000		17,998
0.566%, 10/06/17 (FRN)		20,000		19,997
Federal Farm Credit Bank (DN)
0.275%, 06/03/16		36,790		36,789
0.260%, 06/06/16		10,000		10,000
0.238%, 06/07/16		50,000		49,998
0.270%, 06/09/16		20,000		19,999
0.227%, 06/14/16		43,500		43,496
0.391%, 06/16/16		15,000		14,998
0.270%, 06/21/16		20,000		19,997
0.391%, 06/23/16		5,000		4,999
0.260%, 06/29/16		15,000		14,997
0.250%, 06/30/16		50,000		49,990
0.401%, 07/12/16		7,000		6,997
0.290%, 08/04/16		25,000		24,987
0.320%, 08/05/16		15,000		14,991
0.401%, 09/09/16		15,000		14,983
0.451%, 09/22/16		15,000		14,979
0.401%, 09/28/16		10,000		9,987
0.447%, 10/06/16		55,000		54,913
0.501%, 10/25/16		20,000		19,959
0.572%, 12/05/16		23,470		23,401
0.522%, 12/21/16		20,000		19,941
				635,890
Federal Home Loan Bank — 30.0%
Federal Home Loan Bank
0.449%, 07/28/16 (FRN)		13,000		13,000
0.520%, 09/16/16		25,000		24,998
0.570%, 10/13/16 (FRN)		20,000		20,000
0.426%, 11/25/16 (FRN)		40,000		39,999
0.440%, 01/27/17 (FRN)		30,000		30,000
0.680%, 02/27/17		25,000		24,994
0.481%, 05/16/17 (FRN)		20,000		19,998
Federal Home Loan Bank (DN)
0.419%, 06/01/16		37,700		37,700
0.282%, 06/03/16		105,000		104,998
0.275%, 06/06/16		30,800		30,799
0.390%, 06/09/16		10,000		9,999
0.260%, 06/10/16		30,000		29,998
0.365%, 06/14/16		10,000		9,999
0.380%, 06/16/16		9,000		8,999
0.390%, 06/21/16		20,000		19,996
0.295%, 06/22/16		99,000		98,983
0.320%, 06/24/16		34,919		34,912
0.308%, 06/29/16		43,248		43,238
0.320%, 06/30/16		28,200		28,193
0.340%, 07/06/16		24,520		24,512
0.337%, 07/08/16		43,600		43,585
0.297%, 07/11/16		35,000		34,988
0.340%, 07/12/16		17,800		17,793
0.340%, 07/13/16		59,800		59,776
0.280%, 07/14/16		15,000		14,995
0.348%, 07/20/16		40,000		39,981

	Par (000)		Value (000)
0.330%, 07/22/16	$	17,000	$	16,992
0.333%, 07/27/16		40,000		39,979
0.339%, 07/29/16		62,000		61,966
0.300%, 08/03/16		25,000		24,987
0.338%, 08/05/16		64,275		64,236
0.400%, 08/08/16		50,000		49,962
0.420%, 08/11/16		100,000		99,917
0.420%, 08/12/16		22,345		22,326
0.429%, 08/19/16		95,700		95,610
0.430%, 08/25/16		25,000		24,975
0.440%, 08/26/16		20,600		20,578
0.411%, 08/31/16		10,500		10,489
0.491%, 09/21/16		20,000		19,970
0.501%, 10/12/16		20,000		19,963
0.476%, 10/14/16		20,000		19,964
0.431%, 11/01/16		25,000		24,954
0.541%, 11/02/16		20,000		19,954
0.541%, 11/04/16		40,000		39,906
				1,543,161
Federal Home Loan Mortgage Corporation — 11.4%
Federal Home Loan Mortgage Corporation (DN)
0.401%, 06/03/16		15,000		15,000
0.350%, 06/09/16		10,000		9,999
0.285%, 06/10/16		27,272		27,270
0.370%, 06/17/16		7,000		6,999
0.260%, 06/23/16		95,956		95,941
0.340%, 07/01/16		50,000		49,990
0.333%, 07/07/16		37,200		37,188
0.258%, 08/03/16		25,000		24,989
0.340%, 08/16/16		17,143		17,131
0.370%, 08/23/16		30,000		29,974
0.300%, 08/26/16		10,000		9,993
0.430%, 09/01/16		25,000		24,975
0.496%, 09/02/16		8,500		8,489
0.401%, 09/12/16		15,000		14,983
0.361%, 09/13/16		20,000		19,979
0.334%, 09/19/16		45,000		44,954
0.373%, 09/20/16		60,000		59,931
0.441%, 10/03/16		15,000		14,977
0.340%, 10/04/16		20,000		19,976
0.530%, 12/01/16		25,000		24,933
0.532%, 12/20/16		26,700		26,620
				584,291
Federal National Mortgage Association — 10.9%
Federal National Mortgage Association (DN)
0.200%, 06/01/16		50,000		50,000
0.330%, 06/08/16		11,720		11,719
0.370%, 06/14/16		15,000		14,998
0.280%, 06/22/16		46,200		46,193
0.240%, 07/06/16		22,500		22,495
0.340%, 07/15/16		10,000		9,996
0.401%, 07/19/16		10,000		9,995
0.451%, 07/20/16		10,000		9,994
0.397%, 08/17/16		35,000		34,970
0.380%, 08/24/16		102,300		102,209
0.360%, 09/01/16		30,000		29,972
0.366%, 09/02/16		45,000		44,957
0.381%, 09/23/16		30,000		29,964
0.330%, 10/04/16		75,000		74,914
0.381%, 10/05/16		25,000		24,967

See Notes to Financial Statements.

16

	Par (000)		Value (000)
U.S. GOVERNMENT AGENCY OBLIGATIONS — continued
Federal National Mortgage Association — continued
0.437%, 10/06/16	$	30,000	$	29,954
0.481%, 10/17/16		15,000		14,972
				562,269
Total U.S. Government Agency Obligations (Cost $3,325,611)				3,325,611
U.S. TREASURY OBLIGATIONS — 11.9%
U.S. Treasury Bills† — 5.7%
0.217%, 06/02/16		30,000		30,000
0.247%, 06/09/16		30,000		29,998
0.239%, 06/23/16		115,000		114,985
0.237%, 07/07/16		50,000		49,991
0.256%, 08/04/16		10,000		9,995
0.298%, 08/11/16		20,000		19,988
0.313%, 08/18/16		20,000		19,987
0.337%, 08/25/16		20,000		19,984
				294,928
U.S. Treasury Notes — 6.2%
0.500%, 06/30/16		15,000		15,001
0.420%, 07/31/16 (FRN)		75,000		75,011
0.500%, 07/31/16		78,000		78,019
0.500%, 08/31/16		20,000		20,005
1.000%, 08/31/16		10,000		10,016
0.375%, 10/31/16		10,000		9,999
0.403%, 10/31/16 (FRN)		10,380		10,379
0.625%, 11/15/16		20,000		20,021
0.500%, 11/30/16		10,000		10,003
0.625%, 12/15/16		20,000		20,016
0.424%, 04/30/17 (FRN)		30,000		30,001
0.427%, 07/31/17 (FRN)		20,000		19,999
				318,470
Total U.S. Treasury Obligations (Cost $613,398)				613,398
	Number of Shares
MONEY MARKET FUNDS — 0.0%
Invesco Government & Agency Portfolio 0.260% (A)		1,000,000		1,000
Total Money Market Funds (Cost $1,000)				1,000

	Par (000)		Value (000)
REPURCHASE AGREEMENTS†† — 22.5%
Credit Suisse Securities LLC
0.290% (dated 05/31/16, due 06/01/16, repurchase price $100,000,806, collateralized by U.S. Treasury Bond and U.S. Treasury Note, 1.625% and 2.875%, due 12/31/19 and 05/15/43, total value $102,000,689)		$100,000	$	100,000
Goldman Sachs & Co.
0.290% (dated 05/31/16, due 06/01/16, repurchase price $400,003,222, collateralized by Federal Home Loan Mortgage Corporation Bond, Federal National Mortgage Association Bonds and Government National Mortgage Association Bond, 3.000% to 5.500%, due 02/01/37 to 03/01/46, total value $408,000,000)		400,000		400,000
HSBC Securities USA
0.270% (dated 05/31/16, due 06/01/16, repurchase price $200,001,500, collateralized by Federal National Mortgage Association Bond, 6.500%, due 08/01/22, total value $204,004,444) (B)		200,000		200,000
0.250% (dated 05/31/16, due 06/01/16, repurchase price $100,000,694, collateralized by U.S. Treasury Notes, 1.000% and 3.750%, due 11/15/18 and 08/31/19, total value $102,003,077) (B)		100,000		100,000
Merrill Lynch Pierce Fenner & Smith
0.290% (dated 05/31/16, due 06/01/16, repurchase price $100,000,806, collateralized by Government National Mortgage Association Bond, 4.000%, due 09/20/45, total value $102,000,000)		100,000		100,000
Toronto Dominion Securities LLC
0.280% (dated 05/31/16, due 06/01/16, repurchase price $255,001,983, collateralized by Federal National Mortgage Association Bonds and U.S. Treasury Bonds, 3.000% to 3.500%, due 10/01/30 to 11/15/45, total value $260,100,077)		255,000		255,000
Total Repurchase Agreements (Cost $1,155,000)				1,155,000
TOTAL INVESTMENTS — 99.1%     (Cost $5,095,009)*				5,095,009
Other Assets & Liabilities – 0.9%				43,867
TOTAL NET ASSETS — 100.0%			$	5,138,876

See Notes to Financial Statements.

17

P N C  G o v e r n m e n t  M o n e y  M a r k e t  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

* Also cost for Federal income tax purposes.

† The rate shown is the effective yield at purchase date.

†† As of May 31, 2016, the total value of repurchase agreements was $1,155,000 (000) and the value of collateral received, excluding excess, was $1,155,000 (000). See Note 2 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

(B) As of May 31, 2016, the total value of HSBC Securities USA Repurchase Agreements is $300,000 (000) (collateral value of $306,008 (000)).

See Notes to Financial Statements.

18

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Money Market Funds		$	1,000		$	–		$	–		$	1,000
Repurchase Agreements			–			1,155,000			–			1,155,000
U.S. Government Agency Obligations			–			3,325,611			–			3,325,611
U.S. Treasury Obligations			–			613,398			–			613,398
Total Assets - Investments in Securities		$	1,000		$	5,094,009		$	–		$	5,095,009

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

19

P N C  T a x  E x e m p t  M o n e y  M a r k e t  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a r c h  3 1 ,  2 0 1 6

	Par (000)		Value (000)
MUNICIPAL SECURITIES — 99.6%
Alaska — 0.9%
Valdez Alaska Marine Terminal, Exxon Pipeline Project (RB) Series C (VRDN)
0.340%, 06/01/16	$	3,800	$	3,800
California — 4.3%
California State (GO) Series A, Sub-Series A-2 (LOC - Royal Bank of Canada) (VRDN)
0.370%, 06/01/16		4,400		4,400
California State (GO) Series B, Sub-Series B-4 (LOC - JPMorgan Chase Bank) (VRDN)
0.380%, 06/01/16		14,600		14,600
				19,000
Connecticut — 0.5%
Connecticut State Health & Educational Facility Authority, Yale University (RB) Series V-2 (VRDN)
0.250%, 06/01/16		2,000		2,000
District of Columbia — 3.1%
District of Columbia, Georgetown University (RB) Series C (LOC-Bank of Tokyo-Mitsubishi UFJ) (VRDN)
0.390%, 06/02/16		13,650		13,650
Florida — 1.9%
Citizens Property Insurance (RB) Series A-1
5.000%, 06/01/16		3,535		3,535
6.000%, 06/01/16		4,645		4,645
				8,180
Indiana — 0.5%
Purdue University, Student Facilities System (RB) Series A (VRDN)
0.400%, 06/01/16		2,435		2,435
Iowa — 4.3%
Iowa City (RB) (SBPA - U.S. Bank NA) (VRDN)
0.430%, 06/01/16		13,550		13,550
Iowa Finance Authority, Drake University Project (RB) (LOC - Wells Fargo Bank) (VRDN)
0.350%, 06/01/16		5,490		5,490
				19,040
Kentucky — 1.1%
Berea Educational Facilities, Berea College Project (RB) Series A (VRDN)
0.390%, 06/01/16		2,700		2,700
Berea Educational Facilities, Berea College Project (RB) Series B (VRDN)
0.380%, 06/01/16		2,035		2,035
				4,735
Louisiana — 2.3%
Louisiana Public Facilities Authority, CHRISTUS Health (RB) Series B-3 (LOC - Bank of New York Mellon) (VRDN)
0.400%, 06/01/16		10,310		10,310

	Par (000)		Value (000)
Maryland — 2.1%
Montgomery County (BAN) (GO) Series A (SBPA - Wells Fargo Bank) (VRDN)
0.340%, 06/01/16	$	3,100	$	3,100
Montgomery County (BAN) (GO) Series B (SPBA - Wells Fargo Bank) (VRDN)
0.350%, 06/01/16		6,200		6,200
				9,300
Massachusetts — 8.2%
Massachusetts Bay Transportation Authority (RB) Series A-2 (SBPA - JPMorgan Chase Bank) (VRDN)
0.390%, 06/01/16		11,380		11,380
Massachusetts Development Finance Agency, Partners Healthcare System (RB) Series K-1 (SBPA - Wells Fargo Bank) (VRDN)
0.370%, 06/02/16		2,000		2,000
Massachusetts Health & Educational Facilities Authority, Harvard University (RB) Series R (VRDN)
0.250%, 06/01/16		5,400		5,400
Massachusetts Health & Educational Facilities Authority, Museum of Fine Arts (RB) Series A2 (SBPA - Bank of America) (VRDN)
0.370%, 06/01/16		1,200		1,200
Massachusetts Health & Educational Facilities Authority, Partners Healthcare System (RB) Series D-5 (VRDN)
0.320%, 06/01/16		200		200
Massachusetts Water Resources Authority (RB) Series F (SBPA - Bank of New York Mellon Trust) (VRDN)
0.390%, 06/02/16		16,000		16,000
				36,180
Michigan — 2.3%
University of Michigan (RB) Series B (SBPA— Northern Trust) (VRDN)
0.280%, 06/01/16		6,135		6,135
University of Michigan (RB) Series D-1 (VRDN)
0.300%, 06/01/16		3,865		3,865
				10,000
Minnesota — 1.1%
Rochester Minnesota Mayo Clinic (RB) Series A (VRDN)
0.370%, 06/01/16		5,000		5,000
Mississippi — 2.2%
Jackson County, Mississippi Polution Control, Chevron USA, Inc. Project (RB) (VRDN)
0.350%, 06/01/16		6,500		6,500
Mississippi Business Finance Corporation Gulf Opportunity Zone Industrial Development, Chevron USA, Inc. Project (RB) Series B (VRDN)
0.350%, 06/01/16		2,000		2,000

See Notes to Financial Statements.

20

	Par (000)		Value (000)
MUNICIPAL SECURITIES — continued
Mississippi — continued
Mississippi Business Finance Corporation, Chevron USA, Inc. Project (RB) Series D (VRDN)
0.340%, 06/01/16	$	1,000	$	1,000
				9,500
Missouri — 4.3%
Missouri Development Finance Board Cultural Facilities, The Nelson Gallery Foundation (RB) Series A (SBPA - Northern Trust) (VRDN)
0.350%, 06/01/16		3,000		3,000
Missouri State Health & Educational Facilities Authority, Ascension Health (RB) Series C-3 (VRDN)
0.400%, 06/01/16		10,950		10,950
Missouri State Health & Educational Facilities Authority, BJC Health System (RB) Series A (VRDN)
0.380%, 06/02/16		5,000		5,000
				18,950
New York — 10.8%
New York City (GO) Series A-4 (LOC - Bank of Tokyo-Mitsubishi UFJ) (VRDN)
0.400%, 06/07/16		17,000		17,000
New York City (GO) Sub-Series B-3 (LOC - TD Bank) (VRDN)
0.390%, 06/01/16		16,200		16,200
New York City Municipal Water Finance Authority (RB) Series DD-1 (SBPA - TD Bank) (VRDN)
0.340%, 06/01/16		3,000		3,000
New York City Municipal Water Finance Authority (RB) Sub-Series B-2 (SBPA - Royal Bank of Canada) (VRDN)
0.390%, 06/02/16		3,900		3,900
New York City Transitional Finance Authority, New York City Recovery (RB) Series 1, Sub-Series 1C (SBPA - JPMorgan Chase Bank) (VRDN)
0.370%, 06/01/16		1,000		1,000
New York City, Fiscal 2006 (GO) Series I, Sub-Series I-6 (LOC - Bank of New York Mellon Trust) (VRDN)
0.350%, 06/01/16		6,500		6,500
				47,600
North Carolina — 0.9%
Charlotte-Mecklenburg Hospital Authority, Carolinas Healthcare System (RB) Series H (LOC - Wells Fargo Bank) (VRDN)
0.350%, 06/01/16		3,980		3,980
Ohio — 13.1%
Fairfield Township, Fire Station Improvement (BAN) (GO)
1.000%, 06/03/16		3,650		3,650

	Par (000)		Value (000)
Franklin County Hospital Facilities, OhioHealth Corporation (RB) Series B (SBPA - Barclays Bank PLC) (VRDN)
0.400%, 06/01/16	$	8,700	$	8,700
Franklin County Hospital Improvement, Nationwide Children’s Hospital Project (RB) Series B (VRDN)
0.410%, 06/02/16		6,600		6,600
Franklin County, Holy Cross Health Systems Corporation (RB) (VRDN)
0.390%, 06/02/16		4,600		4,600
Franklin County, OhioHealth Corporation (RB) Series A (SBPA - Barclays Bank PLC) (VRDN)
0.400%, 06/01/16		6,000		6,000
Ohio State (GO) Series B (VRDN)
0.400%, 06/01/16		7,935		7,935
Ohio State (GO) Series C (VRDN)
0.390%, 06/01/16		3,500		3,500
Ohio State (GO) Series D (VRDN)
0.420%, 06/01/16		3,300		3,300
Ohio State University (RB) Series B (VRDN)
0.400%, 06/01/16		1,000		1,000
Ohio State University (RB) Series B-2 (VRDN)
0.380%, 06/01/16		7,200		7,200
Ohio State University (RB) Series E (VRDN)
0.400%, 06/01/16		5,400		5,400
				57,885
Pennsylvania — 14.7%
Beaver County Industrial Development Authority, FirstEnergy Generation Project (RB) Series B (LOC - Bank of Nova Scotia) (VRDN)
0.380%, 06/01/16		4,550		4,550
Bucks County Industrial Development Authority, Grand View Hospital (RB) Series A (LOC - TD Bank) (VRDN)
0.370%, 06/02/16		1,600		1,600
Delaware River Port Authority (RB) Series A (LOC - Royal Bank of Canada) (VRDN)
0.390%, 06/02/16		16,600		16,600
Geisinger Authority, Pennsylvania Health Systems (RB) Series B (SBPA - U.S. Bank NA) (VRDN)
0.330%, 06/01/16		1,900		1,900
Lower Merion Township School District, Capital Project (GO) Series B (LOC - U.S. Bank NA) (VRDN)
0.390%, 06/02/16		600		600
Northampton County General Purpose Authority, Lehigh University (RB) (SBPA - JPMorgan Chase Bank) (VRDN)
0.380%, 06/02/16		400		400
Northampton County General Purpose Authority, Lehigh University (RB) Series B (SBPA - JPMorgan Chase Bank) (VRDN)
0.380%, 06/02/16		1,560		1,560
Pennsylvania Higher Educational Facilities Authority, Drexel University (RB) Second Series (LOC - JPMorgan Chase Bank) (VRDN)
0.370%, 06/02/16		500		500

See Notes to Financial Statements.

21

P N C  T a x  E x e m p t  M o ne y  M a r k e t  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a r c h  3 1 ,  2 0 1 6

	Par (000)		Value (000)
MUNICIPAL SECURITIES — continued
Pennsylvania — continued
Pennsylvania Higher Educational Facilities Authority, University of Pennsylvania (RB) Series A (LOC - Bank of America) (VRDN)
0.380%, 06/01/16	$	1,400	$	1,400
Philadelphia Gas Works (RB) Fifth Series A-2 (LOC - JPMorgan Chase Bank) (VRDN)
0.400%, 06/02/16		950		950
Philadelphia Hospitals & Higher Education Facilities Authority, Children’s Hospital of Philadelphia Project (RB) Series B (SBPA - Wells Fargo Bank) (VRDN)
0.350%, 06/01/16		1,200		1,200
Philadelphia Hospitals & Higher Education Facilities Authority, Children’s Hospital of Philadelphia Project (RB) Series B (SBPA - Wells Fargo Bank) (VRDN)
0.350%, 06/01/16		9,500		9,500
Philadelphia School District (GO) Series H (LOC - Royal Bank of Canada) (VRDN)
0.400%, 06/02/16		9,200		9,200
Washington County Authority, University of Pennsylvania (RB) (VRDN)
0.380%, 06/02/16		14,920		14,920
				64,880
Texas — 15.0%
Gulf Coast Industrial Development Authority, Exxon Mobil Project (RB) (VRDN)
0.320%, 06/01/16		1,325		1,325
Harris County Cultural Education Facilities Finance Corporation, Methodist Hospital System (RB) Sub-Series C-1 (VRDN)
0.360%, 06/01/16		5,000		5,000
Harris County Cultural Education Facilities Finance Corporation, Methodist Hospital System (RB) Sub-Series C-2 (VRDN)
0.360%, 06/01/16		2,000		2,000
Harris County Health Facilities Development Corporation, Methodist Hospital System (RB) Series A-1 (VRDN)
0.360%, 06/01/16		4,190		4,190
Lower Neches Valley Authority Industrial Development Corporation, Exxon Mobil Project (RB) (VRDN)
0.320%, 06/01/16		8,500		8,500
Red River Education Financing Corporation, Texas Christian University Project (RB) (SBPA - Northern Trust) (VRDN)
0.410%, 06/01/16		9,000		9,000
Tarrant County Health Facilities Development Corporation, Cook Children’s Medical System (RB) Series B (VRDN)
0.380%, 06/02/16		15,000		15,000
Texas (GO) Series D (SBPA - State Street Bank & Trust) (VRDN)
0.400%, 06/01/16		6,700		6,700
University of Texas System (RB) Series B (VRDN)
0.380%, 06/02/16		2,950		2,950

	Par (000)		Value (000)
University of Texas System (RB) Series B (VRDN)
0.380%, 06/02/16	$	2,900	$	2,900
University of Texas System (RB) Series B (VRDN)
0.370%, 06/02/16		8,490		8,490
				66,055
Utah — 3.5%
Murray, IHC Health Services (RB) Series B (VRDN)
0.390%, 06/02/16		4,850		4,850
Utah County, IHC Health Services (RB) Series C (SBPA - U.S. Bank NA) (VRDN)
0.380%, 06/02/16		10,700		10,700
				15,550
Virginia — 2.5%
Loudoun County Industrial Development Authority, Howard Hughes Medical Institute (RB) Series B (VRDN)
0.390%, 06/01/16		4,000		4,000
Loudoun County Industrial Development Authority, Howard Hughes Medical Institute (RB) Series E (VRDN)
0.390%, 06/01/16		7,250		7,250
				11,250
Total Municipal Securities (Cost $439,280)				439,280
TOTAL INVESTMENTS — 99.6%     (Cost $439,280)*				439,280
Other Assets & Liabilities – 0.4%				1,945
TOTAL NET ASSETS — 100.0%			$	441,225

*  Also cost for Federal income tax purposes.

See Notes to Financial Statements.

22

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Municipal Securities		$	–		$	439,280		$	–		$	439,280
Total Assets - Investments in Securities		$	–		$	439,280		$	–		$	439,280

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

23

P N C   T r e a s u r y   M o n e y  M a r k e t  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y 31, 2016

	Par (000)		Value (000)
U.S. TREASURY OBLIGATIONS — 93.7%
U.S. Treasury Bills† — 46.0%
0.217%, 06/02/16	$	159,000	$	158,999
0.247%, 06/09/16		46,000		45,998
0.320%, 06/16/16		145,000		144,986
0.239%, 06/23/16		114,000		113,983
0.237%, 07/07/16		30,000		29,993
0.228%, 07/21/16		38,000		37,988
0.226%, 07/28/16		50,000		49,982
0.395%, 10/13/16		20,000		19,971
0.407%, 10/20/16		20,000		19,968
				621,868
U.S. Treasury Notes — 47.7%
0.500%, 06/15/16		25,000		25,002
0.500%, 06/30/16		107,000		107,017
1.500%, 06/30/16		5,000		5,004
0.625%, 07/15/16		18,000		18,006
0.420%, 07/31/16 (FRN)		60,000		60,007
0.500%, 07/31/16		90,000		90,026
0.625%, 08/15/16		53,000		53,032
0.500%, 08/31/16		73,000		73,027
1.000%, 08/31/16		15,000		15,023
0.500%, 09/30/16		40,000		40,011
0.375%, 10/31/16		18,000		17,995
0.403%, 10/31/16 (FRN)		28,000		28,000
0.500%, 11/30/16		33,000		33,003
0.625%, 12/15/16		9,000		9,009
0.434%, 01/31/17 (FRN)		22,000		22,003
0.500%, 01/31/17		4,000		4,000
0.424%, 04/30/17 (FRN)		25,000		24,997
0.427%, 07/31/17 (FRN)		20,000		19,998
				645,160
Total U.S. Treasury Obligations (Cost $1,267,028)				1,267,028

	Number of Shares		Value (000)
MONEY MARKET FUNDS — 6.3%
BlackRock Treasury Trust Fund 0.194%†† (A)		500,000		$500
Dreyfus Treasury Prime Cash Management 0.170% (A)		85,047,916		85,048
Total Money Market Funds (Cost $85,548)				85,548
TOTAL INVESTMENTS — 100.0% (Cost $1,352,576)*				1,352,576
Other Assets & Liabilities – 0.0%				646
TOTAL NET ASSETS — 100.0%			$	1,353,222

* Also cost for Federal income tax purposes.

† The rate shown is the effective yield at purchase date.

†† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

24

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Money Market Funds		$	85,548		$	–		$	–		$	85,548
U.S. Treasury Obligations			–			1,267,028			–			1,267,028
Total Assets - Investments in Securities		$	85,548		$	1,267,028		$	–		$	1,352,576

There were no transfers between Levels during the fiscal year ended May 31, 2016.    

See Notes to Financial Statements.

25

P N C  A d v a n t a g e  I n s t i t u t i o n a l  T r e a s u r y   M o n e y  M a r k e t  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Par (000)		Value (000)
U.S. TREASURY OBLIGATIONS — 52.1%
U.S. Treasury Bills† — 32.6%
0.217%, 06/02/16		$75,000		$74,999
0.247%, 06/09/16		15,000		14,999
0.320%, 06/16/16		3,000		3,000
0.226%, 07/28/16		30,000		29,989
0.256%, 08/04/16		25,000		24,989
				147,976
U.S. Treasury Notes — 19.5%
0.500%, 06/30/16		3,500		3,500
1.500%, 06/30/16		5,000		5,004
0.625%, 07/15/16		2,000		2,001
0.420%, 07/31/16 (FRN)		30,000		30,005
0.500%, 08/31/16		8,000		8,002
1.000%, 08/31/16		3,000		3,004
0.625%, 10/15/16		2,000		2,002
0.375%, 10/31/16		3,000		3,000
0.403%, 10/31/16 (FRN)		3,000		3,000
0.500%, 11/30/16		8,000		8,002
0.625%, 12/15/16		4,000		4,004
0.434%, 01/31/17 (FRN)		4,000		4,001
0.500%, 01/31/17		4,000		4,000
0.424%, 04/30/17 (FRN)		4,000		3,999
0.427%, 07/31/17 (FRN)		5,000		4,999
				88,523
Total U.S. Treasury Obligations (Cost $236,499)				236,499
	Number of Shares
MONEY MARKET FUND — 1.1%
Invesco Treasury Portfolio 0.240% (A)		5,000,000		5,000
Total Money Market Fund (Cost $5,000)				5,000

	Par (000)		Value (000)
REPURCHASE AGREEMENTS†† — 44.1%
Goldman Sachs & Co.
0.250% (dated 05/31/16, due 06/01/16, repurchase price $60,000,417, collateralized by U.S. Treasury Bill and U.S. Treasury Notes, 0.000% to 1.625%, due 06/23/16 to 07/31/20, total value $61,200,051)	$	60,000	$	60,000
HSBC Securities USA
0.250% (dated 05/31/16, due 06/01/16, repurchase price $50,000,347, collateralized by U.S. Treasury Bond and U.S. Treasury Note, 3.000% and 6.125%, due 02/28/17 and 08/15/29, total value $51,005,527)		50,000		50,000
Merrill Lynch Pierce Fenner & Smith
0.280% (dated 05/31/16, due 06/01/16, repurchase price $50,000,389, collateralized by U.S. Treasury Note, 1.625%, due 05/31/23, total value $51,000,013)		50,000		50,000
Toronto Dominion Securities LLC
0.270% (dated 05/31/16, due 06/01/16, repurchase price $40,000,300, collateralized by U.S. Treasury Bond and U.S. Treasury Notes, 1.625% to 3.375%, due 03/31/19 to 05/15/44, total value $40,800,005)		40,000		40,000
Total Repurchase Agreements (Cost $200,000)				200,000
TOTAL INVESTMENTS — 97.3% (Cost $441,499)*				441,499
Other Assets & Liabilities — 2.7%				12,418
TOTAL NET ASSETS — 100.0%			$	453,917

* Also cost for Federal income tax purposes.

† The rate shown is the effective yield at purchase date.

†† As of May 31, 2016, the total value of repurchase agreements was $200,000 (000) and the value of collateral received, excluding excess, was $200,000 (000). See Note 2 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

26

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Money Market Fund		$	5,000		$	–		$	–		$	5,000
Repurchase Agreements			–			200,000			–			200,000
U.S. Treasury Obligations			–			236,499			–			236,499
Total Assets - Investments in Securities		$	5,000		$	436,499		$	–		$	441,499

There were no transfers between Levels during the fiscal year ended May 31, 2016.    

See Notes to Financial Statements.

27

P N C  M o n e y  M a r k e t  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S  ( 0 0 0 )

M a y  3 1,  2 0 1 6

	Government			Tax Exempt
	Money Market			Money Market
	Fund			Fund
ASSETS
Investments in non-affiliates at value		$	3,940,009		$	439,280
Investments in repurchase agreements at value			1,155,000			–
Total Investments at value(1)			5,095,009			439,280
Cash			144,923			1,779
Receivable for shares of beneficial interest issued			1			–
Dividends and interest receivable			461			403
Prepaid expenses			27			–
Other assets			173			105
Total Assets			5,240,594			441,567
LIABILITIES
Payable for shares of beneficial interest redeemed			591			16
Payable for investment securities purchased			99,898			–
Dividends payable
Class I			175			16
Class A			24			3
Advisor Class			–			4
Investment advisory fees payable			423			66
Administration fees payable			157			26
Custodian fees payable			36			7
Transfer agent fees payable			14			11
Trustees’ deferred compensation payable			173			105
Trustees’ fees payable			42			13
Other liabilities			185			75
Total Liabilities			101,718			342
TOTAL NET ASSETS		$	5,138,876		$	441,225
Investments in non-affiliates at cost		$	3,940,009		$	439,280
Investments in repurchase agreements at cost			1,155,000			–
(1) Total Investments at cost		$	5,095,009		$	439,280

See Notes to Financial Statements.

28

	Government				Tax Exempt
	Money Market				Money Market
	Fund				Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	5,139,081			$	441,263
Undistributed (Distributions in Excess of ) Net Investment Income			(145	)			(1	)
Accumulated Net Realized Gain (Loss) on Investments			(60	)			(37	)
Total Net Assets		$	5,138,876			$	441,225
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	4,776,561,245			$	246,465,065
Class I shares outstanding			4,776,874,520				246,538,652
Net Asset Value, Offering and Redemption Price Per Share		$	1.00			$	1.00
Net assets applicable to Class A		$	361,439,598			$	25,410,419
Class A shares outstanding			361,441,169				25,410,386
Net Asset Value, Offering and Redemption Price Per Share		$	1.00			$	1.00
Net assets applicable to Advisor Class		$	875,202			$	169,349,266
Advisor Class shares outstanding			875,595				169,360,733
Net Asset Value, Offering and Redemption Price Per Share		$	1.00			$	1.00

See Notes to Financial Statements.

29

P N C   M o n e y   M a r k e t  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S  ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Treasury			Advantage
	Money Market			Institutional Treasury
	Fund			Money Market
ASSETS
Investments in non-affiliates at value		$	1,352,076		$	241,499
Investments in affiliates at value			500			–
Investments in repurchase agreements at value			–			200,000
Total Investments at value(1)			1,352,576			441,499
Cash			–			12,452
Receivable for shares of beneficial interest issued			34			–
Dividends and interest receivable			859			109
Prepaid expenses			15			14
Other assets			67			21
Total Assets			1,353,551			454,095
LIABILITIES
Dividends payable
Class I			33			–
Class A			7			–
Institutional Shares			–			9
Advisor Shares			–			1
Investment advisory fees payable			103			65
Administration fees payable			37			17
Custodian fees payable			9			11
Transfer agent fees payable			8			11
Trustees’ deferred compensation payable			67			21
Trustees’ fees payable			11			2
Other liabilities			54			41
Total Liabilities			329			178
TOTAL NET ASSETS		$	1,353,222		$	453,917
Investments in non-affiliates at cost		$	1,352,076		$	241,499
Investments in affiliates at cost			500			–
Investments in repurchase agreements at cost			–			200,000
(1) Total Investments at cost		$	1,352,576		$	441,499

See Notes to Financial Statements.

30

	Treasury				Advantage
	Money Market				Institutional Treasury
	Fund				Money Market
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	1,353,291			$	453,927
Undistributed (Distributions in Excess of ) Net Investment Income			(59	)			(10	)
Accumulated Net Realized Gain (Loss) on Investments			(10	)			–
Total Net Assets		$	1,353,222			$	453,917
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	1,215,071,345				N/A
Class I shares outstanding			1,215,126,846				N/A
Net Asset Value, Offering and Redemption Price Per Share		$	1.00				N/A
Net assets applicable to Class A		$	138,150,183				N/A
Class A shares outstanding			138,172,423				N/A
Net Asset Value, Offering and Redemption Price Per Share		$	1.00				N/A
Net assets applicable to Institutional shares			N/A			$	453,916,832
Institutional shares outstanding			N/A				453,931,083
Net Asset Value, Offering and Redemption			N/A			$	1.00
Net assets applicable to Advisor shares(1)			N/A			$	10.00
Advisor shares outstanding			N/A				10.00
Net Asset Value, Offering and Redemption Price Per Share			N/A			$	1.00
Net assets applicable to Service shares(1)			N/A			$	10.00
Service shares outstanding			N/A				10.00
Net Asset Value, Offering and Redemption Price Per Share			N/A			$	1.00

⁽¹⁾ At May 31, 2016, net assets of the Advisor and Service Shares of Advantage Institutional Treasury Money Market Fund represented initial seed capital.

See Notes to Financial Statements.

31

P N C  M o n e y  M a r k e t  F u n d s

S T A T E M E N T S  O F  O P E R A T I O N S  ( 0 0 0 )

F o r  t h e  Y e a r  E n d e d  M a y  3 1 ,  2 0 1 6

	Government		Tax Exempt
	Money Market		Money Market
	Fund		Fund
Investment Income:
Dividends		$        4		$        –
Interest		3,895		621
Total Investment Income		3,899		621
Expenses:
Investment advisory fees		2,837		1,140
Administration fees		861		297
Transfer agent fees		34		30
Custodian fees		62		14
Professional fees		363		102
Pricing service fees		4		16
Printing and shareholder reports		102		17
Registration and filing fees		61		58
Trustees’ fees		95		36
Miscellaneous		106		34
Total Expenses		4,525		1,744
Less:
Waiver of investment advisory fees(1)		(1,535)		(1,140)
Expense reimbursement(1)		–		(149)
Net Expenses		2,990		455
Net Investment Income		909		166
Realized Gain (Loss) on Investments:
Net realized loss on investments sold		–		(20)
Net Increase (Decrease) in Net Assets Resulting from Operations		$    909		$    146

⁽¹⁾  See Note 3 in Notes to Financial Statements.

See Notes to Financial Statements.

32

Treasury				Advantage
Money Market				Institutional Treasury
Fund				Money Market
	$	12			$	12
		869				587
		881				599
		1,138				472
		274				99
		21				33
		15				18
		86				57
		1				1
		13				16
		35				35
		33				11
		36				20
		1,652				762
		(896	)			(237	)
		–				–
		756				525
		125				74
		(2	)			–
	$	123			$	74

See Notes to Financial Statements.

33

P N C  M o n e y  M a r k e t  F u n d s

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S  ( 0 0 0 )

	Government								Tax Exempt
	Money Market Fund								Money Market Fund
	For the Year Ended								For the Year Ended
	May 31, 2016				May 31, 2015				May 31, 2016				May 31, 2015
Investment Activities:
Net investment income (loss)		$	909			$	154			$	166			$	135
Net realized gain (loss) on investments sold			–				–				(20	)			(15	)
Net increase (decrease) in net assets resulting from
operations			909				154				146				120
Dividends from net investment income:
Class I			(766	)			(191	)			(99	)			(94	)
Class A			(190	)			(48	)			(68	)			(10	)
Advisor Class			(1	)			–				–				(32	)
Institutional Shares			–				–				–				–
Advisor Shares			–				–				–				–
Total dividends			(957	)			(239	)			(167	)			(136	)
Share Transactions (all at $1.00 per share):
Proceeds from shares issued:
Class I			6,801,271				1,612,238				484,016				1,608,565
Class A			1,478,768				1,565,436				73,832				119,637
Advisor Class			35,533				–				312,068				264,507
Institutional Shares			–				–				–				–
Advisor Shares			–				–				–				–
Service Shares			–				–				–				–
Proceeds from Reorganization shares(1):
Class I			71,447				–				–				–
Advisor Class			14,907				–				–				–
Reinvestment of dividends:
Class I			10				2				–				–
Class A			2				1				5				3
Total proceeds from shares issued and reinvested			8,401,938				3,177,677				869,921				1,992,712
Value of shares redeemed:
Class I			(2,816,347	)			(1,630,051	)			(588,394	)			(1,676,753	)
Class A			(1,438,846	)			(1,377,813	)			(96,868	)			(110,787	)
Advisor Class			(49,564	)			–				(296,351	)			(233,967	)
Institutional Shares			–				–				–				–
Advisor Shares			–				–				–				–
Service Shares			–				–				–				–
Total value of shares redeemed			(4,304,757	)			(3,007,864	)			(981,613	)			(2,021,507	)
Increase (decrease) in net assets from share transactions			4,097,181				169,813				(111,692	)			(28,795	)
Total increase (decrease) in net assets			4,097,133				169,728				(111,713	)			(28,811	)
Net Assets:
Beginning of year			1,041,743				872,015				552,938				581,749
End of year*		$	5,138,876			$	1,041,743			$	441,225			$	552,938
*Including undistributed (distributions in excess of) net investment income		$	(145	)		$	(93	)		$	(1	)		$	–

⁽¹⁾ See Note 1 in Notes to Financial Statements.

See Notes to Financial Statements.

34

						Advantage
Treasury						Institutional Treasury
Money Market Fund						Money Market
For the Year Ended						For the Year Ended
May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015
$	125		$	39		$	74		$	17
	(2	)		3			–			–
	123			42			74			17
	(101	)		(31	)		–			–
	(39	)		(25	)		–			–
	–			–			–			–
	–			–			(63	)		(16	)
	–			–			(14	)		(4	)
	(140	)		(56	)		(77	)		(20	)
	1,726,844			584,590			–			–
	647,504			778,134			–			–
	–			–			–			–
	–			–			1,023,862			508,742
	–			–			116,737			70,773
	–			–			9,267			5,907
	–			–			–			–
	–			–			–			–
	1			–			–			–
	1			–			–			–
	2,374,350			1,362,724			1,149,866			585,422
	(736,956	)		(573,736	)		–			–
	(653,798	)		(807,250	)		–			–
	–			–			–			–
	–			–			(682,245	)		(571,308	)
	–			–			(151,567	)		(46,923	)
				–			(12,668	)		(4,107	)
	(1,390,754	)		(1,380,986	)		(846,480	)		(622,338	)
	983,596			(18,262	)		303,386			(36,916	)
	983,579			(18,276	)		303,383			(36,919	)
	369,643			387,919			150,534			187,453
$	1,353,222		$	369,643		$	453,917		$	150,534
$	(59	)	$	(44	)	$	(10	)	$	(7	)

See Notes to Financial Statements.

35

P N C   M o n e y   M a r k e t   F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y   3 1,   2 0 1 6

1. Fund Organization

PNC Funds and PNC Advantage Funds (the “Trusts”), each a Delaware statutory trust, are registered under the Investment Company Act of 1940 (the “1940 Act”), as open-end management investment companies. As of May 31, 2016, the Trusts offered for sale shares of 34 Funds. Each of the Funds is authorized to issue various classes of shares (individually, a “Class”, collectively, the “Classes”). Each share class represents an interest in the same portfolio of investments of the respective Fund and is substantially the same in all respects, except that the classes are subject to different distribution (12b-1) fees and/or shareholder services fees, sales charges and investment minimums. With respect to the PNC Money Market Funds, as defined below, Class I, Advisor Class, Class A, Institutional, Advisor and Service Shares are sold without a sales charge.

Effective May 25, 2016, PNC Money Market Fund and PNC Advantage Institutional Money Market Fund were liquidated pursuant to plans approved by the Board of Trustees (the “Board”) on February 25, 2016.

As of May 31, 2016, the Trusts offered five categories of Funds:

Target Date Funds

PNC Retirement Income Fund, PNC Target 2020 Fund, PNC Target 2030 Fund, PNC Target 2040 Fund and PNC Target 2050 Fund;

Equity Funds

PNC Balanced Allocation Fund, PNC International Equity Fund, PNC International Growth Fund, PNC Large Cap Core Fund, PNC Large Cap Growth Fund, PNC Large Cap Value Fund, PNC Mid Cap Fund, PNC Mid Cap Index Fund, PNC Multi-Factor Small Cap Core Fund, PNC Multi-Factor Small Cap Growth Fund, PNC Multi-Factor Small Cap Value Fund, PNC S&P 500 Index Fund, PNC Small Cap Fund and PNC Small Cap Index Fund;

Fixed Income Funds

PNC Bond Fund, PNC Government Mortgage Fund, PNC High Yield Bond Fund, PNC Intermediate Bond Fund, PNC Limited Maturity Bond Fund, PNC Total Return Advantage Fund and PNC Ultra Short Bond Fund;

Tax Exempt Bond Funds

PNC Intermediate Tax Exempt Bond Fund, PNC Maryland Tax Exempt Bond Fund, PNC Ohio Intermediate Tax Exempt Bond Fund and PNC Tax Exempt Limited Maturity Bond Fund; and

Money Market Funds

PNC Government Money Market Fund, PNC Tax Exempt Money Market Fund, PNC Treasury Money Market Fund and PNC Advantage Institutional Treasury Money Market Fund.

The financial statements presented herein are those of the Money Market Funds (each referred to as a “Fund,” or collectively as the “Funds”). The financial statements of the Target Date Funds, Equity Funds, Fixed Income Funds and Tax Exempt Bond Funds are not presented herein, but are presented separately.

Fund Reorganization

On June 4, 2015, the Board approved an agreement and plan of reorganization (the “Reorganization”) to which PNC Advantage Institutional Government Money Market Fund (the “Target Fund”), a money market fund organized under a separate trust and managed by PNC Capital Advisors, LLC (the “Adviser”), would be reorganized with and into PNC Government Money Market Fund (the “Acquiring Fund”). On September 14, 2015, the Target Fund was reorganized into the Acquiring Fund, each of which has substantially similar investment objectives and identical principal investment strategies. The net assets of the Target Fund were transferred at fair value in a tax-free exchange to the Acquiring Fund after the close of business on September 11, 2015. With this transfer, a shareholder of the Target Fund’s Institutional Shares automatically became a shareholder of Class I Shares of the Acquiring Fund. A shareholder of the Target Fund’s Advisor Shares became a shareholder in the newly formed Advisor Class of the Acquiring Fund.

The table below summarizes the assets transfers for the exchange.

36

Accumulated

Net

Net Assets on

Realized

Share

Net Assets on

Shares

09/11/15

Gains

Conversion

Shares

09/11/15

Target Fund

Redeemed

(000)

(000)

Ratio

Acquiring Fund

Issued

(000)*

PNC Advantage Institutional Government Money Market Fund

PNC Government Money Market Fund

Institutional Class

71,447,425

$71,447

$    –

1.00000

Institutional Class

71,447,425

$1,001,975

Advisor Class

14,906,501

14,907

–

1.00000

Advisor Class

14,906,501

14,907

PNC Advantage Institutional Government Money Market Fund Total

$86,354

$    –

PNC Government Money Market Fund Total

$1,016,882

* Amounts reflect net assets of Acquiring Fund subsequent to merger.

The table below summarizes the operation of the Target Fund for the period from June 1, 2015 to September 11, 2015, the operations of the Acquiring Fund for the year ended May 31, 2016 as presented in the Statement of Operations, and the combined Target and Acquiring Funds’ pro-forma results of operations for the year ended May 31, 2016 assuming the acquisition had been completed on June 1, 2015.

	Target Fund’s Operations For the Period June 1, 2015 to September 11, 2015				Acquiring Fund’s Operations For the Year Ended May 31, 2016
			Net				Net	Combined
	Net	Net Realized	Increase		Net	Net Realized	Increase	Total
	Investment	Gain	from		Investment	Gain	from	From
Target	Income	on Investments	Operations	Acquiring	Income	on Investments	Operations	Operations
Fund	(000)	(000)	(000)	Fund	(000)	(000)	(000)	(000)
PNC Advantage Institutional Government Money Market Fund	$7	$–	$7	PNC Government Money Market Fund	$909	$–	$909		$916

2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Fund qualifies as an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to the Investment Companies Topic of U.S. GAAP.

Effective June 1, 2015, the Funds adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that expanded secured borrowing accounting for certain repurchase agreements and also set forth additional disclosure requirements for certain transactions accounted for as sales in order to provide financial statement users with information to compare to similar transactions accounted for as secured borrowings. The adoption of the guidance did not result in any additional disclosure for the Funds.

The following is a summary of significant accounting policies followed by the Funds.

Investment Valuation

The investments of the Funds, other than investments in other money market funds, funding agreements and repurchase agreements, are valued at amortized cost, which approximates market value. The amortized cost method values an investment at its cost at the time of purchase and thereafter assumes a constant proportionate accretion of discount or amortization of premium to its effective maturity. If this method is determined to be unreliable during certain market conditions or for other reasons, a Fund may value its investments at market price, or fair value prices may be determined in good faith using methods approved by the Board. No such investments held on May 31, 2016 were valued using a method other than amortized cost.

Investments in other money market funds are valued at their respective net asset values (“NAV”) as determined by those funds each business day.

37

P N C  M o n e y  M a r k e t  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y  3 1,  2 0 1 6

Investments in repurchase agreements and funding agreements are generally valued at par, which approximates market value, each business day.

Fair value represents the estimated price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment. Valuation techniques should maximize the use of observable market data and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Fair value measurements utilize a hierarchy based on the observability of inputs used to establish fair value. These inputs, listed below, are summarized in three broad levels and investment assets reported at fair value are classified on the basis of the lowest level input that is significant to fair value:

• Level 1 — quoted prices in active markets for identical assets and liabilities, including, but not limited to:

Investment Companies – investments in open-end mutual funds which are valued at their closing NAV.

• Level 2 — other significant observable inputs, including but not limited to:

All Securities – quoted prices for similar securities; quoted prices based on recently executed transactions; adjusted quoted prices based on observable and formulaic inputs; or, observable correlated market inputs.

Fixed Income Securities, Money Market Fund Investments valued at Amortized Cost and Funding and Repurchase Agreements valued at Par – independent pricing service-supplied valuations or quoted prices for similar securities or obligations, including matrix pricing, based on methods which consider standard inputs such as yields or prices of securities or obligations of comparable quality, stability, risk, coupon, collateral (as applicable), maturity, type, trading factors, multiple indications of value from dealers or other financial institutions that trade the securities or obligations.

• Level 3 — significant unobservable inputs, including but not limited to:

All Securities – modeling or manual pricing based on each Fund’s own assumptions in determining fair value of investments; or, the significant use of unobservable inputs or stale inputs.

Each Fund recognizes transfers into and out of levels, if any, at the end of the reporting period.

The inputs and methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The valuation hierarchy of each Fund’s securities as of May 31, 2016 can be found at the end of each Fund’s Schedule of Investments.

Investment Transactions, Investment Income and Expenses

Investment transactions are recorded on a trade date basis for financial statement preparation purposes. Realized gains and losses on investments sold are recorded on the identified cost basis. Interest income is recorded on the accrual basis. Discounts and premiums are accreted and amortized, respectively, to interest income over the estimated lives of the respective investments using the effective interest method. Expenses common to all of the Funds are allocated among the Funds on the basis of each Fund’s respective average net assets or other appropriate allocation methodologies, including a fixed or straight-line allocation across Funds. Expenses common to all Classes, investment income, and realized and unrealized gains and losses on investments are allocated to each Class based upon the relative daily net assets of each Class. Distribution (12b-1) fees and shareholder services fees relating to a specific Class are charged directly to that Class.

Dividends and Distributions to Shareholders

Dividends from net investment income for each of the Funds are declared daily and paid monthly. Any net realized capital gains will be distributed at least annually by each of the Funds. Dividends and distributions to shareholders are recorded on the ex-dividend date.

38

Delayed-Delivery Transactions

Certain Funds may purchase or sell securities on a delayed-delivery basis. These transactions involve a commitment by a Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, a Fund will designate liquid assets in the amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery securities before they are delivered, which may result in a capital gain or loss. When a Fund has sold a security on a delayed-delivery basis, the Fund does not participate in any future gains and losses with respect to the security.

Repurchase Agreements

Each Fund, with the exception of Treasury Money Market Fund, may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, a Fund purchases a debt obligation from a financial institution such as a bank or broker-dealer, subject to a mutual agreement that the seller will repurchase the obligation at an agreed-upon price and time. The debt obligation is collateralized by securities held in safekeeping by the Fund’s custodian or another qualified custodian or in the Federal Reserve/U.S. Treasury book-entry system with value no less than the repurchase price (including accrued interest). A custody agreement in connection with the Master Repurchase Agreement defines eligible securities for collateral in relation to each repurchase agreement. If the seller defaults on its repurchase obligation, the Fund maintains the right to sell the underlying securities at market value. Upon an event of default under the Master Repurchase Agreement, if the seller defaults and the value of the collateral security declines or if the seller enters an insolvency proceeding, the Fund may suffer time delays and incur costs in connection with the disposition of the collateral security and recovery of any losses incurred.

At period end, certain Funds had investments in repurchase agreements. The gross value and related collateral received for these investments are presented in each applicable Fund’s Schedule of Investments and the value of these investments is also presented in the Statements of Assets and Liabilities. The value of the related collateral received exceeded the value of the repurchase agreements as of May 31, 2016.

Master Agreements and Netting Arrangements

Certain Funds are parties to various agreements, including but not limited to Master Repurchase Agreements, which govern the terms of certain transactions with select counterparties (collectively “Master Agreements”). These Master Agreements generally include provisions for general obligations, agreements, representations, collateral and certain events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions. The netting arrangements are generally tied to credit related events that if triggered, would cause an event, default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination or default event, the total market value exposure would be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. Credit related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. An election made by a counterparty to terminate a transaction early under a Master Agreement could have an adverse impact on a Fund’s financial statements. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Collateral under the Master Agreements is usually in the form of cash, U.S. Treasury or U.S. Government agency securities, but can include other types of securities. There can be no assurance that the Master Agreements will be successful in limiting credit or counterparty risk. Details of the counterparties and the collateral as of May 31, 2016 are included in each Fund’s Schedule of Investments.

3. Investment Advisory Fees and Other Transactions with Affiliates

Investment Advisory Fees

Fees paid by the Funds pursuant to the Advisory Agreement with PNC Capital Advisors, LLC (the “Adviser”), an indirect wholly owned subsidiary of The PNC Financial Services Group, Inc. (“PNC Group”), are payable monthly and are calculated at an annual rate of each Fund’s average daily net assets. The Adviser may, from time to time, waive any portion of its fees and reimburse certain expenses of a Fund. Such waivers and reimbursements are voluntary and may be changed or discontinued at any time. The table below lists the advisory fees, waivers and expense reimbursements that were in effect during the fiscal year ended May 31, 2016.

39

P N C  M o n e y  M a r k e t  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

Ma y  3 1,  2 0 1 6

During the fiscal year ended May 31, 2016, the Adviser voluntarily agreed to waive advisory fees and reimburse expenses to the extent necessary to maintain a minimum daily net yield of at least 0.03% for Government Money Market Fund, 0.02% for Tax Exempt Money Market Fund, and 0.01% for Treasury Money Market Fund and Institutional Treasury Money Market Fund.

				Net
		Effective		Effective
	Annual	Annual	Fee	Annual	Expense
	Rate	Rate	Waiver	Rate	Reimbursement
Government Money Market Fund*	0.15%	0.17%	0.09%	0.08%	0.00%
Tax Exempt Money Market Fund	0.20%	0.20%	0.20%	0.00%	0.03%
Treasury Money Market Fund**	0.15%	0.22%	0.17%	0.05%	0.00%
Advantage Institutional Treasury Money Market Fund	0.15%	0.15%	0.08%	0.07%	0.00%

 * Upon the consummation of the Reorganization, the Board approved the reduction of the Fund’s annual investment advisory fee to 0.15%. Prior to the reduction, the annual investment advisory fee was 0.25%.    

** Effective February 26, 2016, the Board approved the reduction of the Fund’s annual investment advisory fee to 0.15%. Prior to the reduction, the annual investment advisory fee was 0.25%.

Shareholder Services Fees

The Trusts maintain Shareholder Services Plans (the “Services Plans”) with respect to the Class A and Advisor Class Shares of PNC Funds and Advisor and Service Shares of PNC Advantage Funds. Pursuant to the Services Plans, the Trusts enter into shareholder servicing agreements with certain financial institutions, including affiliates of the Adviser, under which they agree to provide, for PNC Funds, shareholder administrative services to their customers who beneficially own Class A and Advisor Class Shares in consideration for payment of up to 0.25% of the average daily net assets of each Fund’s Class A Shares and up to 0.10% of the average daily net assets of each Fund’s Advisor Class Shares and for PNC Advantage Funds, shareholder administrative services to their customers who beneficially own Advisor and Service Shares in consideration for payment of up to 0.10% and 0.25% of the average daily net assets attributable to Advisor and Service Shares, respectively.

Trustees’ Fees

For his or her service as a Trustee of the Trusts, each Trustee, effective January 1, 2016, receives an annual fee of $79,000 plus $7,250 for each Board meeting attended in person, and such amount, up to a maximum of $3,250, as may be determined for each special Board meeting attended, in addition to a reimbursement of all out-of-pocket expenses incurred as a Trustee. The Chairman of the Board receives an additional fee of $25,000 per year and the Chairman of the Audit Committee receives an additional fee of $10,000 per year for their services in these capacities. Prior to January 1, 2016, each Trustee received an annual fee of $76,000 plus $7,250 for each Board meeting attended in person, and such amount, up to a maximum of $3,250, as may be determined for each special Board meeting attended, in addition to a reimbursement of all out-of-pocket expenses incurred as a Trustee. The Chairman of the Board received an additional fee of $25,000 per year and the Chairman of the Audit Committee received an additional fee of $10,000 per year for their services in these capacities. No person who is an officer, director, trustee, or employee of the Adviser, the Underwriter or any parent or subsidiary thereof, who serves as an officer, trustee, or employee of the Trusts, receives any compensation from the Trusts. Fees are paid quarterly in arrears and are allocated to the Trusts based on their average daily net assets.

Trustees who receive fees are eligible for participation in the Trust’s Deferred Compensation Plan (the “Plan”), which is an unfunded, nonqualified deferred compensation plan. The Plan allows each eligible Trustee to defer receipt of all or a percentage of fees that would otherwise be payable for services performed.

Administration Fees

PNC Funds, PNC Advantage Funds, BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) and the Adviser are parties to Co-Administration and Accounting Services Agreements, pursuant to which BNY Mellon and the Adviser serve as Co-Administrators to the Trusts. BNY Mellon and the Adviser served as Co-Administrators to PNC Funds in exchange for fees at the annual rate of 0.05% based on average daily net assets of PNC Funds, excluding the average daily net assets of the Target Date Funds. For their services to PNC Funds as Co-Administrators during the fiscal year ended May 31, 2016, approximately 0.0215% was allocated to BNY Mellon and approximately 0.0285% was allocated to the Advisor in aggregate. For their services to PNC Advantage Funds as Co-Administrators during the fiscal year ended May 31, 2016, BNY Mellon received fees at the annual rate of 0.0125% of each Fund’s first $1 billion of average daily net assets and 0.01% of each Fund’s average daily net assets in excess of $1 billion. The Adviser received 0.01% of each Fund’s average net assets. BNY Mellon also receives other transaction-based charges from the Trusts and is reimbursed for out-of-pocket expenses by the Trusts.

40

Affiliated Money Market Funds

Pursuant to SEC rules, the Funds may invest cash balances not otherwise invested in portfolio securities to purchase shares of the money market funds offered by Advantage, an affiliate of PNC Funds, or BlackRock Funds. The Funds will bear the costs and fees associated with investments in other investment companies, including other investment companies managed by the Adviser or its affiliates, except that the Adviser has agreed to waive its advisory fee in an amount equal to the advisory fees paid to the Adviser by a PNC money market fund with respect to its short-term reserves swept into an Advantage money market fund. Certain other contractual and voluntary advisory fee waivers may reduce the Adviser’s obligation to waive its advisory fees in connection with such investments. This waiver may be terminated at any time without prior notice.

PNC Group owns a minority interest in BlackRock, Inc. As a result, the BlackRock Funds could be deemed to be affiliates of the Adviser.

The amount invested by Treasury Money Market Fund in BlackRock Treasury Trust Fund remained unchanged during the fiscal year ended May 31, 2016.

Details of affiliated holdings at May 31, 2016 are included in the respective Fund’s Schedule of Investments.

For the fiscal year ended May 31, 2016, total income from affiliates for Government Money Market Fund was approximately $2,000 and Treasury Money Market Fund was less than $500. The amounts are included, but not separately disclosed, in the Statements of Operations.

4. Custodian, Distribution/12b-1 and Transfer Agent Fees

Custodian Fees

The Bank of New York Mellon, an affiliate of BNY Mellon (one of the Co-Administrators of the Trusts), serves as the Custodian of the Trusts. The Custodian fees for the Trusts (excluding the Target Date Funds) are calculated at the following annual rate: 0.0025% of the first $5 billion of the combined average daily gross assets of the Trusts (excluding the Target Date Funds), 0.002% of the next $5 billion of the combined average daily gross assets of the Trusts (excluding the Target Date Funds) and 0.001% of the combined average daily gross assets in excess of $10 billion of the Trusts (excluding the Target Date Funds). The Custodian fees are allocated to the Trusts (excluding the Target Date Funds) based on each Fund’s relative average daily net assets. The Bank of New York Mellon also receives other transaction-based charges from the Trust and is reimbursed for out-of-pocket expenses by the Trust.

Distribution/12b-1 Fees

For its services to the Trusts, the Underwriter, a wholly owned subsidiary of Foreside Financial Group, LLC, receives an annual fee payable directly by the Adviser. PNC Funds has adopted a distribution plan for Class A Shares in accordance with Rule 12b-1 under the 1940 Act (“Rule 12b-1”). Pursuant to the Class A Shares plan, PNC Government Money Market Fund, PNC Treasury Money Market Fund and PNC Tax Exempt Money Market Fund reimburse the Underwriter for direct and indirect costs and expenses incurred in connection with advertising, marketing and other distribution services in an amount not to exceed 0.10% per annum of the average daily net assets of those Funds’ Class A Shares. The Board renewed a commitment whereby actual distribution fees for Class A Shares will be no more than 0.00% per annum. This commitment continues through February 28, 2017, at which time the Board will consider whether to renew, revise or discontinue it.

During the fiscal year ended May 31, 2016, the 12b-1 accrual was at an annual rate of 0.00% for each of PNC Government Money Market Fund, PNC Treasury Money Market Fund and PNC Tax Exempt Money Market Fund.

Transfer Agent

BNY Mellon serves as Transfer Agent for the Funds. For its services as Transfer Agent, BNY Mellon receives a fee based primarily upon the number of accounts serviced. Certain minimum fees and transaction charges may apply.

41

P N C M o n e y  M a r k e t  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y  3 1,  2 0 1 6

5. Federal Income Taxes

Each Fund is classified as a separate taxable entity for Federal income tax purposes and intends to continue to qualify as a separate “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required.

Each Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as an expense during the current year. A tax position that does meet the more-likely-than-not threshold shall be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with the relevant taxing authority. Management has analyzed each Fund’s tax positions through the fiscal year ended May 31, 2016 and for each Fund’s open tax years (years ended May 31, 2013 through May 31, 2015) and has concluded that no provision for income tax is required in each Fund’s financial statements.

The tax character of dividends and distributions paid during the fiscal years ended May 31, 2016 and May 31, 2015 were as follows:

	Tax-Exempt			Ordinary
	Income			Income		Total
	(000)			(000)		(000)
Government Money Market Fund
2016		$	–		$783		$783
2015			–		221		221
Tax Exempt Money Market Fund
2016			155		–		155
2015			137		–		137
Treasury Money Market Fund
2016			–		103		103
2015			–		56		56
Advantage Institutional Treasury Money Market Fund
2016			–		68		68
2015			–		20		20

As of May 31, 2016, the components of total net assets on a tax basis were as follows:    

			Undistributed	Undistributed	Capital	Late-Year	Other	Total
	Paid-in		Tax Exempt	Ordinary	Loss	Losses	Temporary	Net
	Capital		Income	Income	Carryforward	Deferred	Differences	Assets
	(000)		(000)	(000)	(000)	(000)	(000)	(000)
Government Money Market Fund		$5,139,081	$–	$25	$  (60)	$  –	$(170)		$5,138,876
Tax Exempt Money Market Fund		441,263	98	–	(17)	(19)	(100)		441,225
Treasury Money Market Fund		1,353,291	–	9	(9)	(1)	(68)		1,353,222
Advantage Institutional Treasury Money Market Fund		453,927	–	2	–*	–	(12)		453,917

    *Amount represents less than $500.    

The amount of dividends from net investment income and distributions from net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under U.S. GAAP. These book/tax differences are either temporary or permanent in nature and are attributable primarily to differences in the book/tax treatment of deferred compensation. The character and timing of dividends and/or distributions made during the year from net investment income and/or net realized capital gains may differ from the year that the income or realized capital gains (losses) were recorded by the Funds. To the extent any of these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. Accordingly, the following permanent differences have been reclassified to/from the following accounts for the fiscal year ended May 31, 2016:

42

	Undistributed
	(Distributions in Excess of)				Accumulated
	Net Investment				Net Realized			Paid-in
	Income				Losses			Capital
	(000)				(000)			(000)
Government Money Market Fund		$	(4	)		$	–		$	4
Tax Exempt Money Market Fund			–				13			(13	)

For Federal income tax purposes, realized capital losses may be carried forward and applied against future realized capital gains. During the fiscal year ended May 31, 2016, capital loss carryforwards that were utilized to offset capital gains were as follows:

	(000)
Government Money Market Fund		$–*
*Amount represents less than $500.

At May 31, 2016, the Funds had capital loss carryforwards (in thousands) available to offset future realized capital gains through the

indicated expiration dates:    

	Expiring May 31,
	2017		2018		Indefinite			Total
Government Money Market Fund		$59		$–		$1			$60
Tax Exempt Money Market Fund		–		–		17			17
Treasury Money Market Fund		–		8		1			9
Advantage Institutional Treasury Money Market Fund		–		–		–	*		–	*
*Amount represents less than $500.

Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), net capital losses incurred after May 31, 2011 may be carried forward indefinitely with their character retained as short term or long term. Net capital losses incurred prior to May 31, 2011 may be carried forward for eight years and are treated as short term capital losses in the year to which they were carried. However, the Modernization Act requires that post-enactment net capital losses (i.e., those incurred after May 31, 2011) be used before pre-enactment net capital loss carryforwards, which increases the likelihood that pre-enactment capital loss carryforwards will expire unused.

6. Certain Principal Risks

An investment in a Fund is subject to a number of risks. Below is a discussion of some, but not all, of the risks of investing in the Funds. Please see the relevant Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

Each of the Funds may invest up to 5% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale and other securities which may not be readily marketable. The relative illiquidity of some of these securities may adversely affect a Fund’s ability to dispose of such securities in a timely manner and at a fair price. Securities acquired under the provisions of Rule 144A can only be traded between qualified institutional buyers. Any such security will not be considered illiquid so long as it is determined by the Board or the Adviser, acting under guidelines approved and monitored by the Board, that an adequate trading market exists for that security. Details of investments in illiquid and/or restricted securities are included in each Fund’s Schedule of Investments.

Tax Exempt Money Market Fund follows an investment policy of investing in municipal obligations of various states which may, at times, comprise concentrations in one or several states. Economic changes affecting each state and related public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the Fund. The repayment of certain municipal obligations may be insured by third parties. Although bond insurance reduces the risk of loss due to default by a municipal issuer, insured bonds remain subject to the risk that their market values may fluctuate for other reasons and there is no assurance that the insurance provider will meet its obligations. Insured securities have been identified in the Schedules of Investments. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in the Funds.

43

P N C  M o n e y  M a r k e t  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y  31,  2 0 1 6

Certain obligations held in the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include letters of credit, liquidity guarantees and third-party insurance.

7. Indemnifications

In the ordinary course of business, the Funds enter into contracts that contain a variety of indemnifications. The Funds have not historically incurred material expenses in respect of those provisions.

8. Relevant Accounting Pronouncements

In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective prospectively for annual periods ending after December 15, 2016, and interim periods thereafter. At this time, management is evaluating the implications of these changes on the financial statements.

9. SEC Money Market Fund Rule Amendments

In July 2014, the SEC adopted amendments to its rules governing the operation of money market funds. The new rules require, among other things, certain money market funds to cease using the amortized cost method to value their shares and to cause transactions in shares of these funds to be effected using a “floating” NAV. The SEC also adopted amendments that permit the board of trustees of a money market fund to impose a liquidity fee of up to 2% of a shareholder’s redemption request (any such fee a “temporary liquidity fee”) and/or suspend redemptions for a period of up to ten days in certain circumstances. The amendments may require the imposition of a temporary liquidity fee in some circumstances, unless the Board determines such a fee is not in the fund’s best interests. Those provisions are expected to become effective in October 2016. The Adviser intends to manage PNC Government Money Market Fund, PNC Treasury Money Market Fund and PNC Advantage Institutional Treasury Money Market Fund (the “Government Money Market Funds”) to cause them to qualify as “government money market funds” under the revised regulations and to enable them to continue to seek to maintain stable NAVs per share of one dollar. Under the revised regulations, government money market funds are generally not subject to the default fees and gates that may apply to other money market funds, and the Board of Trustees of the Government Money Market Funds has determined not to impose fees and gates on them. The Adviser and the Board continue to evaluate the rule amendments and their potential impact on the Funds and their financial statements.

10. Subsequent Events

Subsequent events have been evaluated through the date that the financial statements were issued. There were no material subsequent events identified which required adjustment to, or additional disclosure in, the financial statements.

Pursuant to plans approved by the Board on February 25, 2016, PNC Tax Exempt Money Market Fund was liquidated on June 8, 2016.

44

P N C  M o n e y  M a r k e t  F u n d s

N O T I C E  T O  S H A R E H O L D E R S

(U n a u d i t e d)

The information set forth below is for each Fund’s fiscal year as required by Federal income tax laws. Shareholders, however, must report dividends on a calendar year basis for income tax purposes, which may include dividends for portions of two fiscal years of a Fund. Accordingly, the information needed by shareholders for calendar year 2016 income tax purposes will be sent to them in early 2017. Please consult your tax adviser for proper treatment of this information.

Tax Information

For shareholders that do not have a May 31, 2016 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2016 tax year end, please consult your tax adviser as to the pertinence of this notice.

Of the dividends paid by each Fund, the corresponding percentages represent the amount of such dividends which are tax exempt for regular Federal income tax purposes.

Name of Fund
Tax Exempt Money Market Fund	100.00%

Proxy Voting

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to their portfolio securities as well as information regarding how the Trusts voted proxies during the most recent 12-month period ended June 30, is available upon request, without charge, by calling 1-800-622-FUND (3863), visiting the website of the Trusts at pncfunds.com, or on the SEC’s website at http://www.sec.gov.

Quarterly Schedule of Investments

The Form N-Q, which includes a complete schedule of investments, must be filed with the SEC within 60 days of the end of the first and third fiscal quarters of the Trusts. The Forms N-Q of the Trusts are available upon request, without charge, by calling 1-800-622-FUND (3863), visiting the website of the Trusts at pncfunds.com, on the SEC’s website at http://www.sec.gov, or they may be reviewed and/or copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).

Fund Holdings

A monthly listing of the holdings of the PNC Money Market Funds can be found by visiting the website of the Trusts at pncfunds.com.

45

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P N C  M o n e y  M a r k e t  F u n d s

P N C  F U N D S  N O T I C E  O F  P R I V A C Y  P O L I C Y  &  P R A C T I C E S

(U n a u d i t e d)

The funds recognize and respect the privacy concerns and expectations of our customers(1). Federal law gives customers the right to limit some but not all sharing of customer information that we collect. Federal law also requires us to tell you how we collect, share and protect your personal information.

This notice is provided to you so that you will know what kinds of information we collect and the circumstances in which that information may be disclosed to third parties who are not affiliated with the funds.

Collection of Customer Information

The funds collect nonpublic personal information about our customers from the following sources:

• Account Applications and other forms, which may include a customer’s name, address, social security number, date of birth, and information about a customer’s investment goals and risk tolerance;

• Account History. including information about the transactions and balances in a customer’s accounts; and

• Correspondence, written, telephonic or electronic, between a customer and the funds or service providers to the funds.

Disclosure of Customer Information⁽²⁾

The funds may disclose all of the information described above to certain third parties who are not affiliated with the funds under one or more of these circumstances:

• As Authorized – if you request or authorize the disclosure of the information.

• As Permitted by Law – for example, sharing information with companies who maintain or service customer accounts for the funds is permitted and is essential for us to provide shareholders with necessary or useful services with respect to their accounts.

• Under Joint Agreements – the funds may also share information with companies that perform marketing services on our behalf or to other financial institutions with whom the funds have joint marketing agreements, such as The PNC Financial Services Group, Inc. and its affiliates.

These third parties must agree to strict confidentiality provisions to assure the protection of your information.

Sharing of Customer Information

We do not share such customer information with affiliates or non-affiliates for use in their marketing activities.

Security of Customer Information

The funds require service providers to the funds:

• to maintain policies and procedures designed to assure only appropriate access to, and use of, information about customers of the funds; and

• to maintain physical, electronic and procedural safeguards that comply with federal standards to guard nonpublic personal information of customers of the funds.

The funds will adhere to the policies and practices described in this notice regardless of whether you are a current or former shareholder of the funds. If you have any questions concerning this Notice, or about the funds in general, please call: 1-800-622-3863 for PNC Funds.

⁽¹⁾  For purposes of this notice, the terms “customer” or “customers” includes individuals who provide nonpublic personal information to the funds, but do not invest in the funds’ shares.

⁽²⁾  The funds do not share information about shareholders who are residents of California with affiliates of the funds or with unaffiliated companies under joint marketing agreements.

Investment Adviser

PNC Capital Advisors, LLC

One East Pratt Street, 5th Floor

Baltimore, MD 21202

Underwriter

PNC Funds Distributor, LLC

Three Canal Plaza,

Suite 100,

Portland, ME 04101

www.foreside.com

Legal Counsel

Ropes & Gray LLP

800 Boylston Street

Boston, MA 02199-3600

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

1700 Market Street

Philadelphia, PA 19103

Custodian

The Bank of New York Mellon

One Wall Street

New York, NY 10286

P.O. Box 9795 Providence, RI 02940-9795 PRESORTED STANDARD U.S. POSTAGE PAID BNY MELLON

TARGET DATE FUNDS Retirement Income Fund Target 2020 Fund Target 2030 Fund Target 2040 Fund Target 2050 Fund EQUITY FUNDS Balanced Allocation Fund International Equity Fund International Growth Fund Large Cap Core Fund Large Cap Growth Fund Large Cap Value Fund Mid Cap Fund Mid Cap Index Fund Multi-Factor Small Cap Core Fund Multi-Factor Small Cap Growth Fund Multi-Factor Small Cap Value Fund S&P 500 Index Fund Small Cap Fund Small Cap Index Fund FIXED INCOME FUNDS Bond Fund Government Mortgage Fund High Yield Bond Fund Intermediate Bond Fund Limited Maturity Bond Fund Total Return Advantage Fund Ultra Short Bond Fund TAX EXEMPT BOND FUNDS Intermediate Tax Exempt Bond Fund Maryland Tax Exempt Bond Fund Ohio Intermediate Tax Exempt Bond Fund Tax Exempt Limited Maturity Bond Fund OTHER PNC FUNDS MONEY MARKET FUNDS Government Money Market Fund Tax Exempt Money Market Fund Treasury Money Market Fund	This material must be preceded or accompanied by a prospectus. You should consider the investment objectives, risks, charges and expenses of the PNC Target Date Funds, PNC Equity Funds, PNC Fixed Income Funds and PNC Tax Exempt Bond Funds (individually, a “Fund”, collectively, the “Funds”) carefully before investing. A prospectus and other information about the Funds may be obtained by calling your investment professional, calling 1-800-622-FUND (3863) or downloading one at pncfunds.com. Please read it carefully before investing.
	N O T   F D I C   I N S U R E D   l   N O   B A N K   G U A R A N T E E   l   M A Y   L O S E   V A L U E
	Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com. PNC Capital Advisors, LLC (“PCA”), 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. PNC Funds are distributed by PNC Funds Distributor, LLC (the “Underwriter”), Three Canal Plaza, Suite 100, Portland, ME 04101. The Underwriter is not affiliated with PCA and is not a bank. ©2016 The PNC Financial Services Group, Inc. All rights reserved.

TABLE OF CONTENTS

Letter to Shareholders			1
Trustees and Officers of the Trust			5
Report of Independent Registered Public Accounting Firm			7
Abbreviations and Definitions for Schedules of Investments and Financial Statements			8
PNC Target Date Funds
Explanation of Expense Tables			25
	Fund Overview	Financial Highlights	Schedule of Investments
Retirement Income Fund	9	26	31
Target 2020 Fund	11	27	33
Target 2030 Fund	15	28	35
Target 2040 Fund	17	29	37
Target 2050 Fund	21	30	39
Statements of Assets and Liabilities			41
Statements of Operations			43
Statements of Changes in Net Assets			45
PNC Equity Funds
Explanation of Expense Tables			79
	Fund Overview	Financial Highlights	Schedule of Investments
Balanced Allocation Fund	47	81	95
International Equity Fund	51	82	106
International Growth Fund	55	83	112
Large Cap Core Fund	57	84	116
Large Cap Growth Fund	59	85	119
Large Cap Value Fund	61	86	122
Mid Cap Fund	63	87	124
Mid Cap Index Fund	65	88	126
Multi-Factor Small Cap Core Fund	67	89	128
Multi-Factor Small Cap Growth Fund	69	90	131
Multi-Factor Small Cap Value Fund	71	91	134
S&P 500 Index Fund	73	92	137
Small Cap Fund	75	93	140
Small Cap Index Fund	77	94	142
Statements of Assets and Liabilities			145
Statements of Operations			153
Statements of Changes in Net Assets			157
PNC Fixed Income and Tax Exempt Bond Funds
Explanation of Expense Tables			185
	Fund Overview	Financial Highlights	Schedule of Investments
Bond Fund	161	187	198
Government Mortgage Fund	163	188	203
High Yield Bond Fund	165	189	205
Intermediate Bond Fund	167	190	208
Limited Maturity Bond Fund	169	191	213
Total Return Advantage Fund	171	192	217
Ultra Short Bond Fund	173	193	223
Intermediate Tax Exempt Bond Fund	175	194	226
Maryland Tax Exempt Bond Fund	177	195	229
Ohio Intermediate Tax Exempt Bond Fund	179	196	231
Tax Exempt Limited Maturity Bond Fund	181	197	233
Statements of Assets and Liabilities			237
Statements of Operations			243
Statements of Changes in Net Assets			247
Notes to Financial Statements			251
Trustees’ Review and Approval of Advisory Agreement			284
Notice to Shareholders			285
Proxy Voting and Quarterly Schedules of Investments			287

P N C  F u n d s

L E T T E R  T O  S H A R E H O L D E R S

“Volatility heightened in the capital markets...as global economic growth struggled.”

Commentary provided by PNC Capital Advisors, LLC as of May 31, 2016

* Past performance is no guarantee of future results.

References to Fund performance throughout is the performance of Class I Shares.

1

Dear Shareholders:

We are pleased to present this annual report for PNC Target Date Funds, PNC Equity Funds, PNC Fixed Income Funds and PNC Tax Exempt Bond Funds for the twelve months ended May 31, 2016 (the “annual period”).

Of particular note during the annual period was our launch of PNC International Growth Fund on February 29, 2016. PNC’s International Equity Team has managed the growth portion of PNC International Equity Fund for the past 18 years. However, this is the first time the International Growth strategy is available in a stand-alone mutual fund vehicle. PNC International Growth Fund leverages the combined expertise of Managing Director Martin C. Schulz, J.D. and Senior Analyst and Portfolio Manager Calvin Y. Zhang along with the other members of the team based in Cleveland, Ohio. The Fund is benchmarked against the MSCI ACWI ex USA Growth Index and is open to investors in I, A and R Share Classes.

The annual period was a challenging one for most of the PNC Funds, as volatility increased and persisted throughout the year in both the equity and fixed income markets. Additionally, commodity prices experienced a dramatic selloff and rebound during the year. Moreover, uncertainty about the pace of the Federal Reserve’s (the “Fed”) monetary policy normalization, slowing global economic growth, currency dynamics and political tensions all added to the market volatility.

The broad U.S. equity markets were mostly flat to modestly negative, and the international equity markets declined more significantly during the annual period. Unsurprisingly, Class I Shares of all but one of the PNC Equity Funds generated negative absolute returns during the annual period as did four of the five PNC Target Date Funds’ Class I Shares. The broad taxable and tax-exempt fixed income markets posted more solid positive returns. In turn, six of the seven PNC Fixed Income Funds’ Class I Shares and all four PNC Tax Exempt Bond Funds’ Class I Shares similarly generated positive absolute returns.

All that said, we are investors, not traders, and as such, we maintain a long-term perspective and remain disciplined in our investment strategies as we navigate the short-term waves of choppy and uncertain markets. We continue to believe that by offering the opportunity to diversify your investments among an array of equity, taxable fixed income and tax-exempt fixed income mutual funds, PNC Capital Advisors, LLC may help you and/or your adviser fulfill your individual asset allocation objectives.

Following a synopsis of the major factors affecting the financial markets during the annual period, you will find PNC Funds’ portfolio managers’ highlights of the key factors influencing the performance of their Funds as well as the financial statements and schedules of portfolio investments for each of the PNC Funds.

Economic Review

Volatility heightened in the capital markets during the annual period, as global economic growth struggled. For much of the annual period, global Gross Domestic Product (“GDP”) growth in the advanced economies remained uneven. Accommodative monetary policies in developed countries helped to stabilize economic and financial conditions, with growth of combined developed economies in the 1% to 2% range. But several emerging markets were under stress from weak commodity prices causing decelerating growth, current account deficits, currency depreciation and inflation. Economic weakness exacerbated political stress in both developed and emerging markets.

P N C  F u n d s

L E T T E R  T O  S H A R E H O L D E R S

U.S. GDP growth in 2015 was 2.0% but then rose just 1.1% during the first quarter of 2016. However, second quarter 2016 GDP was projected to be between 2.0% and 2.5% due to strong housing data and stronger consumption. The U.S. labor market was strong by most metrics for much of the annual period, but then faltered a bit from March through May 2016. The U.S. unemployment rate fell to 4.7%, although that decline was mainly attributable to a decline in labor force participation. Such softness in the U.S. labor market, including in non-farm payroll increases, tempered the Fed’s path toward interest rate normalization. At the end of the annual period, the then most-recent Fed projections showed interest rates increasing at a slower pace in 2017 and 2018 compared to its projections from March 2016. While there is a small chance the Fed will raise short-term rates over the next few months, it appears the Fed may wait until much later in 2016 before the next incremental increase in the federal funds rate. Following the June 23, 2016 decision by U.K. voters to leave the European Union (“Brexit”), the federal funds futures market was barely pricing in an increase by December 2016, and, remarkably, a greater chance of a cut during the second half of 2016.

Equities

U.S. equity markets, as measured by the Russell Investments Indices, struggled, posting flat to modestly negative returns during the annual period. Large-cap stocks returned 0.78%; mid-cap stocks returned -1.97%; and small-cap stocks returned -5.97%. Internationally, equity market returns were generally modestly negative in local currency terms, but the stronger U.S. dollar for the first three fiscal quarters of the annual period negatively affected, rather substantially, not only U.S. companies with operations in international markets but also international investments when converted to U.S. dollar terms. Developed international markets, as measured by the MSCI EAFE^® Index, returned -9.24%, and emerging markets, as gauged by the MSCI Emerging Markets Index, posted a return of -17.33%, each in U.S. dollar terms.

Through much of the annual period, equity market performance was volatile. Global equity markets were generally lower in 2015, as the strength in the U.S. dollar served as a headwind for investment returns outside of the U.S., though the fourth quarter of 2015 saw a rebound over the losses incurred during the third quarter. Global equity markets then experienced even more volatility during the first five months of 2016. In January and early February 2016, global recession fears spread as concerns increased about China’s economic slowdown and demand weakness, as commodity prices continued to fall. After lows seen on February 11, 2016, these concerns began to fade, driven by stabilizing commodities, a more dovish-than-expected Fed, and more surprising upside economic data. International equity markets experienced headwinds toward the latter half of the first quarter of 2016 due to weak economic data and local currency strength. In April and May 2016, there was a rebound in energy prices, boosting U.S. equities overall into positive territory. However, downward revisions in global economic growth estimated by both the International Monetary Fund and the World Bank, heightened investor risk aversion and limited capacity for further monetary policy measures maintained pressure on returns across international equities. A looming Brexit vote, the United Kingdom’s referendum on whether to remain a member of the European Union, further unsettled international equity markets toward the end of the annual period.

Within U.S. equity markets, growth stocks bested value stocks during the annual period in the large cap segment, but value stocks outpaced growth stocks among mid-cap and smaller-cap stocks. In large cap, the Russell 1000^® Growth Index gained 1.61%, while the Russell 1000^® Value Index fell 0.06%. For small cap, the Russell 2000^® Growth Index was down 9.13%, and the Russell 2000^® Value Index depreciated 2.75%.

Fixed Income

The Barclays U.S. Aggregate Bond Index returned 2.99% for the annual period, with the taxable fixed income markets experiencing similar volatility to the equity markets. Returns in the fixed income markets were mixed for 2015, as the U.S. Treasury yield curve, or spectrum of maturities, underwent a positive butterfly shift in which the short-term end and the long-term end of the yield curve rose more than the intermediate-term portion of the yield curve. Most of the increase in the short-term end occurred between October and December 2015, as the probability of December Fed action increased. Outside of U.S. Treasury debt, the structured or securitized, and the municipal fixed income markets performed well in 2015. Credit-centric fixed income markets, particularly the high yield market, experienced significant volatility, as interest rates increased and spreads, or yield differentials, versus comparable U.S. Treasury issues widened.

2

P N C  F u n d s

L E T T E R  T O  S H A R E H O L D E R S

“...we believe return expectations should remain tempered.”

Commentary provided by PNC Capital Advisors, LLC as of May 31, 2016

3

Volatility in the fixed income markets continued into the first five months of 2016, as turbulent global economic conditions played a prominent role in the Fed’s decision to keep the targeted federal funds rate unchanged after its initial rate hike in December 2015. At the beginning of 2016, markets were pricing in approximately two interest rate hikes. By the end of the first quarter, the market was barely pricing in one full hike. The Fed became notably more dovish than the narrative it gave in December 2015, with projections moving from four to two projected hikes in 2016. Highly correlated with oil’s movement in the near term, investment-grade and high-yield spreads widened substantially from January to mid-February 2016 and then rebounded back to roughly flat levels by the end of the first quarter. U.S. Treasuries rallied during the first quarter of 2016 overall and again toward the end of the annual period, as heightened geopolitical tensions led to a flight to relative safety.

For the annual period overall, the Barclays U.S. Treasury Index returned 3.01%. The yield curve flattened, as shorter-term interest rates increased while intermediate and longer-term interest rates declined. Two-year Treasury yields rose 0.26% to 0.87%, while 10-year Treasury yields decreased 0.28% to 1.84%. Long-term Treasury yields fell 0.24% to 2.64%. Treasury inflation protected securities (“TIPS”), as measured by the Barclays U.S. TIPS Index, posted a return of 1.23% during the annual period, with a strong correlation to oil price movements.

To compare, the Barclays U.S. Corporate Investment Grade Index returned 3.62% during the annual period, while the Barclays U.S. Corporate High Yield Index returned -0.81%, the latter affected most by energy and other commodity-related securities. Securitized bonds generated positive returns but lagged U.S. Treasuries. The Barclays U.S. Mortgage-Backed Securities Fixed Rate Index rose 2.73%, and the Asset-Backed Securities Index gained 1.81% for the annual period as a whole.

Overall the tax-exempt bond market meaningfully outperformed the taxable fixed income market, remaining rather resilient amidst an annual period marked by both equity and fixed income market volatility. The Barclays Municipal Bond Index returned 5.87% during the annual period. Broadly speaking, new defaults proved rare and fundamentals remained strong, despite pockets of turmoil about Pennsylvania, Illinois, New Jersey and Puerto Rico that made headlines. An investor flight to the perceived safe haven of U.S. Treasuries and inflation below 2% further helped drive municipal bond returns. For investors focused on after-tax total return, the tax advantages that municipal securities offer provided a strong tailwind for investment in the sector.

Our View Ahead

We expect U.S. GDP growth to remain between 2.0% and 2.5% during 2016. We expect global economic activity to remain more sluggish. Many of the economic themes from 2015 are likely to persist through much of 2016, in our view, both domestically and internationally. More specifically, developed economies are essentially in a slow growth mode due to demographics, debt and fiscal policy restraints. Monetary policy has been the sole source of economic stimulus. That said, diverging monetary policies, growth in the Chinese economy, and the Brexit vote are likely to contribute to volatility in the capital markets. In addition, U.S. dollar fluctuations may drive capital flows. Meanwhile, developing economies have been hit with concerns about China’s transition from an industrial to a service-based economy and, as a result, about the country’s diminishing demand for raw materials.

P N C  F u n d s

L E T T E R  T O  S H A R E H O L D E R S

Against this backdrop, we believe return expectations should remain tempered. Domestic corporate profitability may continue to be challenged, in our view, in a slow growth environment with increasing wage pressures. Developed international equity markets have the potential to outperform U.S. markets on a local currency basis. We believe emerging equity markets, especially commodity-related markets, and countries with trade imbalances pose concerns. Policy makers are likely hamstrung by depreciating currencies, and growth may remain subdued even as weaker currencies boost exports and improve current account balances. A weakening U.S. dollar would serve as a stimulus to investing in international equities. All that said, the results of the Brexit vote surprised policy makers and the equity markets did experience dramatic volatility. Brexit, along with upcoming elections in Europe, and the choices on U.S. presidential leadership could potentially heighten equity market volatility on a global basis and for a somewhat extended time. There is a strong current of populism and nationalism around the world, neither of which are conducive, we believe, to fostering further economic growth via trade, capital flows or labor movement or to a sentiment of risk-taking in the markets.

The Fed’s projections for the target federal funds rate at the end of 2015 implied four more rate hikes for 2016. At the March 2016 meeting, the Fed lowered its projections for GDP and inflation and moved its interest rate increase projections closer to market expectations of no more than two more rate hikes for 2016, a stance it maintained at its April 2016 meeting. We believe the U.S. Treasury yield curve is likely to flatten, as short-term and intermediate rates rise, while longer-term U.S. Treasuries remain somewhat anchored by longer-term inflation expectations. Quantitative easing in international markets and demand from U.S. corporate pension plans de-risking are likely to keep longer-term rates from rising steeply as well. If equity market volatility surges, U.S.Treasury yields across the spectrum of maturities may decrease amidst a worldwide flight to perceived safety. As for the tax-exempt bond market, we believe it remains in a healthy position. On the other hand, modest yet unconvincing economic gains and elevated volatility in other fixed income sectors would indicate the possibility of credit turbulence ahead. After the close of the annual period, Fed Chair Yellen noted during Congressional testimony that investors’ risk appetite may change abruptly and added that Brexit could have “significant economic consequences”.

Vigilance remains paramount. In all asset classes, we believe individual security selection and careful sector allocation decisions will be key to performance going forward. As we consider the optimal risk-reward positioning for our Funds during the rest of 2016, we intend to continue to evaluate, among many other factors, the longer-term impacts and potential contagion that may result from the historic U.K. referendum to exit the European Union.

We thank you for being a part of the PNC Funds and for maintaining a long-term perspective as a basic tenet of your investment approach. We value your ongoing confidence in us and look forward to serving your investment needs in the years ahead.

Best Regards,

Mark McGlone	Jennifer E. Spratley
President and Chief Investment Officer	President
PNC Capital Advisors, LLC	PNC Funds

This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to PNC Funds, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and PNC Capital Advisors, LLC undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of PNC Funds’ trading intent.

4

P N C  F u n d s

T R U S T E E S  A N D  O F F I C E R S  O F  T H E  T R U S T

Name,  Address1  Age	Position(s) Held with the Trust	Term of Office and Length of Time Served2		Principal Occupation(s) During Past 5 Years	Number of Portfolios in the Fund Complex Overseen by Trustee3	Other Directorships held by Trustees During Past 5 Years4
Independent Trustees
Dorothy A. Berry  72	Trustee		Since April 2006	Retired; President, Talon Industries, Inc. (administrative, management and business consulting), 1986-2012; Chairman, Independent Directors Council, 2010-2011.	2 registered investment companies consisting of 34 portfolios	Chairman and Director, Professionally Managed Portfolios; Trustee, Allegiant Funds until 2010.
John G. Drosdick  72	Trustee Chairman of the Board and Nominating Committee		Since November 2010 Since June 2011	Retired; Chairman, Chief Executive Officer and President, Sunoco, Inc. (manufacturer and marketer of petroleum and petrochemical products), 1996-2008.	2 registered investment companies consisting of 34 portfolios	Director, United States Steel Corporation (steel producer); Director, H.J. Heinz Company (U.S.-based food company) until June 2013; Director, Lincoln Financial Corporation (financial services) until 2005; Director, Triumph Group Inc. (aerospace manufacturer).
Dale C. LaPorte  74	Trustee		Since April 2005	Retired; Senior Vice President and General Counsel, Invacare Corporation (manufacturer of healthcare products), 2005-2008; Partner, 1974 – 2005, and Chairman of Executive Committee, 2000 – 2004, of Calfee, Halter & Griswold LLP (law firm).	2 registered investment companies consisting of 34 portfolios	Director, Invacare Corporation; Trustee, Allegiant Funds until 2010.
L. White Matthews,  III  70	Trustee Chairman of the Audit Committee		Since February 2010 From June 2011 to February 2012	Retired; Chief Financial Officer, Ecolab Inc., 1999-2001; Chief Financial Officer, Union Pacific Corporation, 1989-1998; Director and Chairman of the Board of Constar International Inc. (bottles and packaging manufacturer), 2009-2014; Retired; Chairman and Director, Ceridian Corporation (payroll and human resources services), 2003- 2007.	2 registered investment companies consisting of 34 portfolios	Director, Hyla Inc. (cellphone recycler); Director, Matrixx Initiatives, Inc. (pharmaceuticals) until 2011; Director, PNC Funds, Inc. until 2010; Director (since 2003) and Chairman of the Board of (publicly traded) Imation Corp. (data storage) until May 2015.
Edward D. Miller,  Jr.  73	Trustee		Since February 2010	Retired; Dean and Chief Executive Officer, Johns Hopkins Medicine, January 1997 to June 2012.	2 registered investment companies consisting of 34 portfolios	Director, Care Fusion (healthcare devices); Director, EnGenelC Ltd. (biopharma- ceuticals) since January 2016; Director, NantHealth, Inc. (healthcare solutions) since January 2016; Director, PNC Funds, Inc. until 2010.
Stephen M. Todd  68	Trustee Chairman of the Audit Committee		Since November 2011 Since February 2012	Retired; Global Vice Chairman – Assurance Professional Practice, Ernst & Young London, UK (accounting firm), 2003 - 2010.	2 registered investment companies consisting of 34 portfolios	Director, Dover Corporation (diversified multi-national manufacturing company); Trustee, Ancora Trust (registered investment company) until 2011.

5

Name,  Address  Age	Position(s) Held with the Trust	Term of Office and Length of Time Served2		Principal Occupation(s) During Past 5 Years	Number of Portfolios in the Fund Complex Overseen by Trustee3	Other Directorships held by Trustees During Past 5 Years4
Officers
Jennifer E. Spratley  One East Pratt Street, 5th Floor  Baltimore, MD 21202  47	President Vice President		Since June 2014 From March 2010 to June 2014	Managing Director and Head of Fund Administration, PNC Capital Advisors, LLC (formerly PNC Capital Advisors, Inc.) since 2007; Treasurer, PNC Capital Advisors, Inc., September 2007 – September 2009; Unit Leader, Fund Accounting and Administration, SEI Investments Global Funds Services 2005 to 2007; Fund Accounting Director, SEI Investments Global Funds Services 1999 to 2007.	N/A	N/A
Michael Nanosky  1900 East 9th Street, 15th Floor  Cleveland, OH 44114  50	Chief Compliance Officer		Since December 2014	Chief Compliance Officer, PNC Funds since 2014; Vice President, Head of Compliance Testing and Monitoring, PNC Capital Advisors, LLC 2010-2014; Chief Compliance Officer, PNC Capital Advisors, LLC and PNC Realty Investors, Inc., 2010-2011; Chief Compliance Officer, CITI Fund Services, 2008-2010.	N/A	N/A
John F. Kernan  1900 East 9th Street, 14th Floor  Cleveland, OH 44114  50	Vice President Treasurer Assistant Treasurer		Since June 2016 Since May 2008 From February 2005 to May 2008	Managing Director and Director of Financial Fund Administration, PNC Capital Advisors, LLC (formerly Allegiant Asset Management Company), since July 2004; Senior Director of Fund Administration, State Street Bank and Trust Company, 1998 – 2004.	N/A	N/A
Thomas R. Rus  One East Pratt Street, 5th Floor  Baltimore, MD 21202  56	Secretary		Since February 2015	Director of Regulatory Fund Administration, PNC Capital Advisors, LLC since February 2015; Chief Compliance Officer; Institutional Shareholder Services Inc. 2014-2015; Chief Compliance Officer, Kroll Bond Rating Agency, Inc. 2010-2014; Vice President, Chief Compliance Officer and Assistant Secretary, MTB Investment Advisors, Inc. and MTB Funds, 2003-2010.	N/A	N/A

¹Each Trustee can be contacted by writing to PNC Funds, c/o PNC Capital Advisors, LLC, One East Pratt Street, 5th Floor, Baltimore, MD 21202, Attention: Thomas R. Rus.

²With respect to the term of office for each Trustee of the Trust, the Trustees have adopted a retirement policy in which each will retire at the calendar year end in the year in which he/she reaches the age of 75 years old. With respect to the term of office for each officer of the Trust, pursuant to the Trust’s By-Laws any officer may be removed by the Board at any regular or special meeting of the Board or the extent permitted by the Board, by the President. In addition, any Trustee or officer may resign at any time by giving written notice to the Trust. Such resignation shall be effective upon receipt, unless specified to be effective at some later time.

³The “Fund Complex” is comprised of two registered investment companies for which PCA or any of its affiliates serves as investment adviser. The number of portfolios overseen by the Trustees includes the PNC Funds (thirty-three portfolios) and the PNC Advantage Funds (one portfolio).

⁴Includes directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended (i.e., “public companies”), or other investment companies registered under the 1940 Act.

For more information regarding the trustees and officers, please refer to the Statement of Additional Information, as supplemented, which is available, without charge, upon request by calling 1-800-622-FUND (3863).

6

R E P O R T  O F  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C  A C C O U N T I N G  F I R M

To the Board of Trustees of PNC Funds and Shareholders of the Target Date Funds, Equity Funds, Fixed Income Funds and Tax Exempt Bond Funds

We have audited the accompanying statements of assets and liabilities, including the schedules of investments (or condensed schedules of investments), of PNC Retirement Income Fund, PNC Target 2020 Fund, PNC Target 2030 Fund, PNC Target 2040 Fund, PNC Target 2050 Fund (the “Target Date Funds”), PNC Balanced Allocation Fund, PNC International Equity Fund, PNC International Growth Fund, PNC Large Cap Core Fund, PNC Large Cap Growth Fund, PNC Large Cap Value Fund, PNC Mid Cap Fund, PNC Mid Cap Index Fund, PNC Multi-Factor Small Cap Core Fund, PNC Multi-Factor Small Cap Growth Fund, PNC Multi-Factor Small Cap Value Fund, PNC S&P 500 Index Fund, PNC Small Cap Fund, PNC Small Cap Index Fund (the “Equity Funds”), PNC Bond Fund, PNC Government Mortgage Fund, PNC High Yield Bond Fund, PNC Intermediate Bond Fund, PNC Limited Maturity Bond Fund, PNC Total Return Advantage Fund, PNC Ultra Short Bond Fund (the “Fixed Income Funds”), PNC Intermediate Tax Exempt Bond Fund, PNC Maryland Tax Exempt Bond Fund, PNC Ohio Intermediate Tax Exempt Bond Fund, and PNC Tax Exempt Limited Maturity Bond Fund (the “Tax Exempt Bond Funds”) (collectively the “Funds”), thirty of the thirty-three funds comprising PNC Funds as of May 31, 2016, including the condensed schedules of investments, and the related statements of operations for the year then ended (as to PNC International Growth Fund, for the period from February 29, 2016 (commencement of operations) through May 31, 2016), the statements of changes in net assets for each of the two years in the period then ended (as to PNC International Growth Fund, for the period from February 29, 2016 (commencement of operations) through May 31, 2016), and the financial highlights for each of the periods presented (the financial statements and financial highlights are included in Item 1 of this Form N-CSR), and the schedules of investments as of May 31, 2016 (included in Item 6 of this Form N-CSR). These financial statements, financial highlights, and schedules of investments, are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements, financial highlights, and schedules of investments based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements, financial highlights, and schedules of investments are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and schedules of investments, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers and transfer agents, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements, financial highlights, and schedules of investments, referred to above present fairly, in all material respects, the financial position of each of the Funds as of May 31, 2016, the results of their operations for the year then ended (as to PNC International Growth Fund, for the period from February 29, 2016 (commencement of operations) through May 31, 2016), the changes in their net assets for each of the two years in the period then ended (as to PNC International Growth Fund, for the period from February 29, 2016 (commencement of operations) through May 31, 2016), and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Philadelphia, Pennsylvania

July 28, 2016

7

P N C  F u n d s

ABBREVIATIONS  AND  DEFINITIONS  FOR   SCHEDULES  OF  INVESTMENTS

AND  FINANCIAL  STATEMENTS

Schedules of Investments:

ADR — American Depositary Receipt

AGM — Assured Guaranty Municipal

AMBAC — Ambac Assurance Corporation

BAN — Bond Anticipation Note

Cl — Class

DD — Delayed Delivery Security

DE — Developed Equity

ETF — Exchange-Traded Fund

ETM — Escrowed to Maturity

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GMTN — Global Multi-Currency Notes

GNMA — Government National Mortgage Association

GO — General Obligation

LLC — Limited Liability Company

LP — Limited Partnership

MTN — Medium Term Note

NATL-RE — National Public Finance Guaranty Corporation

PLC — Public Limited Company

PSF-GTD — Permanent School Fund - Guaranteed

RB — Revenue Bond

REIT — Real Estate Investment Trust

SBPA — Standby Bond Purchase Agreement

STRB — Special Tax Revenue Bond

UCITS — Undertakings For Collective Investment In Transferable Securities

VRDN — Variable Rate Demand Note: the rate shown is the rate in effect on May 31, 2016, and the date shown is the next reset or put date.

Financial Statements:

— Amounts designated as “ — “ are either zero or rounded to zero.

See Notes to Financial Statements.

8

P N C  T a r g e t  D a t e  F u n d s

R E T I R E M E N T  I N C O M E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Michael Coleman

Equity Analyst

Portfolio Manager

Since 2016

Mark McGlone

President, Chief Investment Officer

Portfolio Manager

Since 2012

Martin C. Schulz, J.D. Managing Director, International Equity

Portfolio Manager

Since 2012

Jason Weber, CFA

Fixed Income Analyst

Portfolio Manager

Since 2016

Asset allocation cannot guarantee a profit or prevent a loss. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s net asset value will decline due to rising interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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. Investments in small and mid capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

9

PNC Retirement Income Fund seeks current income and some capital appreciation by investing in a diversified portfolio of equity, fixed income and other diversifying asset classes.

How did the Fund perform during the annual period?

During the annual period, PNC Retirement Income Fund returned 0.04% to Class I Shares investors. The Fund’s benchmark, the S&P Target Date^® Retirement Income Index⁽¹⁾ (the “Index”), returned 0.79%.

During the period, REITs strongly outperformed other asset classes with the FTSE NAREIT, producing a 9.0% return. Fixed income (Barclays Aggregate) outperformed equities, returning 3.0% for the period. Domestic large-cap equities largely outperformed other major equity classes, with the S&P 500^® returning 1.7%. Domestic small-cap equities (Russell 2000), international equities (MSCI ACWI ex USA), and emerging market equities (MSCI EM) produced negative returns at -6.0%, -11.0%, and -17.3%, respectively. Commodities (S&P GSCI^®) fell over 25%.

What factors most significantly affected the Fund’s performance during the annual period?

● Selection detracted from the Fund’s relative results during the annual period, attributable in part to investments in short-duration fixed income funds. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

º Investments in PNC Limited Maturity Bond Fund and PNC Bond Fund hampered results, underperforming the fixed income component of the Index.

º On the positive side, an investment in PNC International Equity Fund contributed favorably to relative results.

● Allocation contributed positively to the Fund’s relative results during the annual period due in part to lower allocations to cash and cash equivalents and to international equities and a higher allocation to real estate investment trusts (“REITs”) than the Index.

º REIT and dividend-paying U.S. equity returns led major asset classes, returning between 9% and 12% during the annual period. However, developed international equities and emerging market equities produced significantly negative returns during the annual period.

º Investment-grade fixed income returns were modestly positive, posting low single digits during the annual period, while high-yield fixed income sectors posted negative single-digit returns during the same time period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Retirement Income Fund
Fixed Income Funds	54.7%
Domestic Equity Funds	22.8
Money Market Fund	13.9
International Equity Funds	6.8
Real Estate Fund	1.8
	100.0%

P N C  T a r g e t  D a t e  F u n d s

R E T I R E M E N T  I N C O M E  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(2)

Date of Inception

1 Year

3 Years

5 Years

Since Inception

Max Sales Charge

Max CDSC

Total Gross Fund Operating Expenses (3)

Total Net Fund Operating Expenses (3)

Class I Shares

9/28/12

0.04

%

3.30%

N/A

3.75%

N/A

N/A

7.34%

0.62%

S&P Target Date® Retirement Income Index

0.79

%

3.63%

N/A

4.06%

N/A

N/A

N/A

N/A

⁽¹⁾ The S&P Target Date^® Retirement Income Index seeks to represent investment opportunity generally available in target date funds through an asset allocation which targets an immediate retirement horizon. The S&P Target Date^® Retirement Income Index is designed to measure the performance of an investable asset allocation strategy that meets the investment objectives of investors nearing or currently in retirement. Investors cannot invest directly in an index. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses. The market cap range of the benchmark frequently changes. As a result, the capitalization of companies in which the Fund invests may also change.

⁽²⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund since its inception for Class I Shares only. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

⁽³⁾ Total Fund Operating Expenses shown, both gross and net of waivers and expense reimbursements and inclusive of Acquired Fund fees and expenses, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time. “Acquired Fund” means any investment company in which the Fund invests or has invested during the year. The Fund’s shareholders indirectly bear the operating expenses of the Fund’s underlying investments.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

10

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 2 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Michael Coleman

Equity Analyst

Portfolio Manager

Since 2016

Mark McGlone

President, Chief Investment Officer

Portfolio Manager

Since 2012

Martin C. Schulz, J.D. Managing Director, International Equity

Portfolio Manager

Since 2012

Jason Weber, CFA

Fixed Income Analyst

Portfolio Manager

Since 2016

Asset allocation cannot guarantee a profit or prevent a loss. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s net asset value will decline due to rising interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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. Investments in small and mid capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

11

PNC Target 2020 Fund seeks to invest in a portfolio of investments that will provide an appropriate balance between capital appreciation and capital preservation in light of the Fund’s target date, with income as an additional goal as the Fund nears its target retirement date. The Fund intends to achieve its objective by investing in a diversified portfolio of equity, fixed income and other diversifying asset classes.

How did the Fund perform during the annual period?

During the annual period, PNC Target 2020 Fund returned -0.70% to Class I Shares investors. The Fund’s benchmark, the S&P Target Date^® To 2020 Index(1) (the “Index”), returned -0.03%.

During the period, REITs strongly outperformed other asset classes with the FTSE NAREIT, producing 9.0% returns. Fixed income (Barclays Aggregate) outperformed equities, returning 3.0% for the period. Domestic large-cap equities largely outperformed other major equity classes, with the S&P 500^® returning 1.7%. Domestic small-cap equities (Russell 2000), international equities (MSCI ACWI ex USA), and emerging market equities (MSCI EM) produced negative returns at -6.0%, -11.0%, and -17.3%, respectively. Commodities (S&P GSCI^®) fell over 25%.

What factors most significantly affected the Fund’s performance during the annual period?

● Selection detracted from the Fund’s relative results among both equity and fixed income funds.

º Investment selections in dividend-focused securities outperformed the Index, however investments in several equity funds, including PNC Large Cap Growth Fund, PNC Large Cap Value Fund and PNC Small Cap Fund, hampered results, underperforming the equity component of the Index.

º Similarly, investments in PNC Limited Maturity Bond Fund and PNC Bond Fund detracted from results, underperforming the fixed income component of the Index.

º Conversely, investments in PNC International Equity Fund contributed favorably to results, outperforming its benchmark component of the Index.

● Allocation contributed positively to the Fund’s relative results due in part to a lower allocation to equities and higher allocations to fixed income and real estate investment trusts (“REITs”) than the Index.

º REIT and dividend-paying U.S. equity returns led major asset classes, returning between 9% and 12% during the annual period. However, developed international equities and emerging market equities produced significantly negative returns during the annual period.

º Investment-grade fixed income returns were modestly positive, posting low single digits during the annual period, while high-yield fixed income sectors posted negative single-digit returns during the same time period.

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 2 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Target 2020 Fund
Fixed Income Funds	47.0	%
Domestic Equity Funds	28.9
International Equity Funds	9.9
Money Market Fund	7.8
Real Estate Fund	3.7
Commodity Fund	2.7
	100.0	%

12

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 2 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

		Average Annual Total Returns as of 05/31/16(2)
	Date of Inception		1 Year	3 Years	5 Years	Since Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses(5)
Class I Shares	9/28/12		-0.70%	4.24%	N/A	5.08%	N/A	N/A	6.18%	0.71%
Class T Shares(3)	4/28/15		-4.04%	2.72%	N/A	3.74%	3.50%	1.00%(4)	6.68%	1.21%
S&P Target Date® to 2020 Index			-0.03%	4.61%	N/A	5.68%	N/A	N/A	N/A	N/A

⁽¹⁾ The S&P Target Date^® To 2020 Index seeks to represent investment opportunity generally available in target date funds through an asset allocation which targets a retirement horizon on or around 2020. The S&P Target Date^® To 2020 Index is designed to measure the performance of an investable asset allocation strategy that meets the investment objectives of investors with an approximate 2020 target retirement horizon. Investors cannot invest directly in an index. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses. The market cap range of the benchmark frequently changes. As a result, the capitalization of companies in which the Fund invests may also change.

⁽²⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund since the date of inception of its Class I and Cass T Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽³⁾ Performance of Class T Shares assumes the deduction of the maximum sales charge.

⁽⁴⁾ The maximum sales charge applies only to purchases of $1,000,000 or more of Class T Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers and expense reimbursements and inclusive of Acquired Fund fees and expenses, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time. “Acquired Fund” means any investment company in which the Fund invests or has invested during the year. The Fund’s shareholders indirectly bear the operating expenses of the Fund’s underlying investments.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

13

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P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 3 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Michael Coleman

Equity Analyst

Portfolio Manager

Since 2016

Mark McGlone

President, Chief Investment Officer

Portfolio Manager

Since 2012

Martin C. Schulz, J.D. Managing Director, International Equity

Portfolio Manager

Since 2012

Jason Weber, CFA

Fixed Income Analyst

Portfolio Manager

Since 2016

Asset allocation cannot guarantee a profit or prevent a loss. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s net asset value will decline due to rising interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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. Investments in small and mid capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

15

PNC Target 2030 Fund seeks to invest in a portfolio of investments that will provide an appropriate balance between capital appreciation and capital preservation in light of the Fund’s target date, with income as an additional goal as the Fund nears its target retirement date. The Fund intends to achieve its objective by investing in a diversified portfolio of equity, fixed income and other diversifying asset classes.

How did the Fund perform during the annual period?

During the annual period, PNCTarget 2030 Fund returned -1.91% to Class I Shares investors.The Fund’s benchmark, the S&P Target Date^® To 2030 Index⁽¹⁾ (the “Index”), returned -0.79%.

During the period, REITs strongly outperformed other asset classes with the FTSE NAREIT, producing 9.0% returns. Fixed income (Barclays Aggregate) outperformed equities, returning 3.0% for the period. Domestic large-cap equities largely outperformed other major equity classes, with the S&P 500^® returning 1.7%. Domestic small-cap equities (Russell 2000), international equities (MSCI ACWI ex USA), and emerging market equities (MSCI EM) produced negative returns at -6.0%, -11.0%, and -17.3%, respectively. Commodities (S&P GSCI^®) fell over 25%.

What factors most significantly affected the Fund’s performance during the annual period?

● Selection detracted from the Fund’s relative results among both equity and fixed income funds.

º Investment selections in dividend-focused securities outperformed the Index, however investments in several equity funds, including PNC Large Cap Growth Fund, PNC Large Cap Value Fund and PNC Small Cap Fund, hampered results, underperforming the equity component of the Index.

º Similarly, investments in PNC Limited Maturity Bond Fund and PNC Bond Fund detracted from results, underperforming the fixed income component of the Index.

º Conversely, investments in PNC International Equity Fund contributed favorably to results, outperforming its benchmark component of the Index.

● Allocation contributed positively, albeit modestly, to the Fund’s relative results due in part to a lower allocation to equities and higher allocations to fixed income and real estate investment trusts (“REITs”) than the Index.

º REIT and dividend-paying U.S. equity returns led major asset classes, returning between 9% and 12% during the annual period. However, developed international equities and emerging market equities produced significantly negative returns during the annual period.

º Investment-grade fixed income returns were modestly positive, posting low single digits during the annual period, while high-yield fixed income sectors posted negative single-digit returns during the same time period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Target 2030 Fund
Domestic Equity Funds	42.8	%
Fixed Income Funds	28.2
International Equity Funds	16.8
Money Market Fund	5.1
Real Estate Fund	3.9
Commodity Fund	3.2
	100.0	%

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 3 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(2)

Date of Inception

1 Year

3 Years

5 Years

Since Inception

Max Sales Charge

Max CDSC

Total Gross Fund Operating Expenses (3)

Total Net Fund Operating Expenses(3)

Class I Shares

9/28/12

-1.91

%

5.53%

N/A

6.74%

N/A

N/A

5.33%

0.78%

S&P Target Date® to 2030 Index

-0.79

%

5.31%

N/A

6.94%

N/A

N/A

N/A

N/A

⁽¹⁾ The S&P Target Date^® To 2030 Index seeks to represent investment opportunity generally available in target date funds through an asset allocation which targets a retirement horizon on or around 2030. The S&P Target Date^® To 2030 Index is designed to measure the performance of an investable asset allocation strategy that meets the investment objectives of investors with an approximate 2030 target retirement horizon. Investors cannot invest directly in an index. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses. The market cap range of the benchmark frequently changes. As a result, the capitalization of companies in which the Fund invests may also change.

⁽²⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund since its inception for Class I Shares only. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

⁽³⁾ Total Fund Operating Expenses shown, both gross and net of waivers and expense reimbursements and inclusive of Acquired Fund fees and expenses, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time. “Acquired Fund” means any investment company in which the Fund invests or has invested during the year. The Fund’s shareholders indirectly bear the operating expenses of the Fund’s underlying investments.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

16

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 4 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Michael Coleman

Equity Analyst

Portfolio Manager

Since 2016

Mark McGlone

President, Chief Investment Officer

Portfolio Manager

Since 2012

Martin C. Schulz, J.D. Managing Director, International Equity

Portfolio Manager

Since 2012

Jason Weber, CFA

Fixed Income Analyst

Portfolio Manager

Since 2016

Asset allocation cannot guarantee a profit or prevent a loss. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s net asset value will decline due to rising interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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. Investments in small and mid capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

17

PNC Target 2040 Fund seeks to invest in a portfolio of investments that will provide an appropriate balance between capital appreciation and capital preservation in light of the Fund’s target date, with income as an additional goal as the Fund nears its target retirement date. The Fund intends to achieve its objective by investing in a diversified portfolio of equity, fixed income and other diversifying asset classes.

How did the Fund perform during the annual period?

During the annual period, PNC Target 2040 Fund returned -2.64% to Class I Shares investors. The Fund’s benchmark, the S&P Target Date^® To 2040 Index⁽¹⁾ (the “Index”), returned -1.60%.

During the period, REITs strongly outperformed other asset classes with the FTSE NAREIT, producing 9.0% returns. Fixed income (Barclays Aggregate) outperformed equities, returning 3.0% for the period. Domestic large-cap equities largely outperformed other major equity classes, with the S&P 500^® returning 1.7%. Domestic small-cap equities (Russell 2000), international equities (MSCI ACWI ex USA), and emerging market equities (MSCI EM) produced negative returns at -6.0%, -11.0%, and -17.3%, respectively. Commodities (S&P GSCI^®) fell over 25%.

What factors most significantly affected the Fund’s performance during the annual period?

● Selection detracted most from the Fund’s relative results among both equity and fixed income funds.

º Investment selections in dividend-focused securities outperformed the Index, however investments in several equity funds, including PNC Large Cap Growth Fund, PNC Large Cap Value Fund and PNC Small Cap Fund, hampered results, underperforming the equity component of the Index.

º Similarly, investments in PNC Limited Maturity Bond Fund and PNC Bond Fund detracted from results, underperforming the fixed income component of the Index.

º Conversely, investments in PNC International Equity Fund contributed favorably to results, outperforming its benchmark component of the Index.

● Allocation also detracted, albeit more modestly, from the Fund’s relative results due in part to a higher allocation to commodities and a slightly lower allocation to fixed income than the Index. These dampeners were partially offset by the positive contributions to the Fund’s relative results of higher allocations to equities and real estate investment trusts (“REITs”) than the Index.

º REIT and dividend-paying U.S. equity returns led major asset classes, returning between 9% and 12% during the annual period. However, developed international equities and emerging market equities produced significantly negative returns during the annual period.

º Investment-grade fixed income returns were modestly positive, posting low single digits during the annual period, while high-yield fixed income sectors posted negative single-digit returns during the same time period.

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 4 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Target 2040 Fund
Domestic Equity Funds	53.7%
International Equity Funds	21.5
Fixed Income Funds	13.0
Money Market Fund	5.2
Real Estate Fund	3.4
Commodity Fund	3.2
	100.0%

18

P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 4 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(2)

Date of Inception

1 Year

3 Years

5 Years

Since Inception

Max Sales Charge

Max CDSC

Total Gross Fund Operating Expenses (5)

Total Net Fund Operating Expenses(5)

Class I Shares

9/28/12

-2.64

%

6.45%

N/A

7.94%

N/A

N/A

7.17%

0.82%

Class T Shares(3)

4/28/15

-6.48

%

4.81%

N/A

6.48%

3.50%

1.00%(4)

N/A

N/A

S&P Target Date® to 2040 Index

-1.60

%

5.84%

N/A

7.89%

N/A

N/A

N/A

N/A

⁽¹⁾ The S&P Target Date^® To 2040 Index seeks to represent investment opportunity generally available in target date funds through an asset allocation which targets a retirement horizon on or around 2040. The S&P Target Date^® To 2040 Index is designed to measure the performance of an investable asset allocation strategy that meets the investment objectives of investors with an approximate 2040 target retirement horizon. Investors cannot invest directly in an index. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses. The market cap range of the benchmark frequently changes. As a result, the capitalization of companies in which the Fund invests may also change.

⁽²⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund since the date of inception of its Class I and Class T Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽³⁾ Performance of Class T Shares assumes the deduction of the maximum sales charge.

⁽⁴⁾ The maximum sales charge applies only to purchases of $1,000,000 or more of Class T Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers and expense reimbursements and inclusive of Acquired Fund fees and expenses, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time. “Acquired Fund” means any investment company in which the Fund invests or has invested during the year. The Fund’s shareholders indirectly bear the operating expenses of the Fund’s underlying investments.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

19

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P N C  T a r g e t  D a t e  F u n d s

T A R G E T  2 0 5 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Michael Coleman

Equity Analyst

Portfolio Manager

Since 2016

Mark McGlone

President, Chief Investment Officer

Portfolio Manager

Since 2012

Martin C. Schulz, J.D. Managing Director, International Equity

Portfolio Manager

Since 2012

Jason Weber, CFA

Fixed Income Analyst

Portfolio Manager

Since 2016

Asset allocation cannot guarantee a profit or prevent a loss. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s net asset value will decline due to rising interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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. Investments in small and mid capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

21

PNC Target 2050 Fund seeks to invest in a portfolio of investments that will provide an appropriate balance between capital appreciation and capital preservation in light of the Fund’s target date, with income as an additional goal as the Fund nears its target retirement date. The Fund intends to achieve its objective by investing in a diversified portfolio of equity, fixed income and other diversifying asset classes.

How did the Fund perform during the annual period?

During the annual period, PNC Target 2050 Fund returned -2.56% to Class I Shares investors. The Fund’s benchmark, the S&P Target Date^® To 2050 Index(1) (the “Index”), returned -2.16%.

During the period, REITs strongly outperformed other asset classes with the FTSE NAREIT, producing 9.0% returns. Fixed income (Barclays Aggregate) outperformed equities, returning 3.0% for the period. Domestic large-cap equities largely outperformed other major equity classes, with the S&P 500^® returning 1.7%. Domestic small-cap equities (Russell 2000), international equities (MSCI ACWI ex USA), and emerging market equities (MSCI EM) produced negative returns at -6.0%, -11.0%, and -17.3%, respectively. Commodities (S&P GSCI^®) fell over 25%.

What factors most significantly affected the Fund’s performance during the annual period?

● Selection detracted most from the Fund’s relative results among both equity and fixed income funds.

º Investment selections in dividend-focused securities outperformed the Index, however investments in several equity funds, including PNC Large Cap Growth Fund, PNC Large Cap Value Fund and PNC Small Cap Fund, hampered results, underperforming the equity component of the Index.

º Similarly, investments in PNC Limited Maturity Bond Fund and PNC Bond Fund detracted from results, underperforming the fixed income component of the Index.

º Conversely, investments in PNC International Equity Fund contributed favorably to results, outperforming its benchmark component of the Index.

● Allocation also detracted, albeit more modestly, from the Fund’s relative results due in part to a higher allocation to commodities and a slightly higher allocation to fixed income than the Index. These dampeners were partially offset by the positive contributions to the Fund’s relative results of a lower allocation to international equities and a higher allocation to real estate investment trusts (“REITs”) than the Index.

º REIT and dividend-paying U.S. equity returns led major asset classes, returning between 9% and 12% during the annual period. However, developed international equities and emerging market equities produced significantly negative returns during the annual period.

º Investment-grade fixed income returns were modestly positive, posting low single digits during the annual period, while high-yield fixed income sectors posted negative single-digit returns during the same time period.

P N C   T a r g e t   D a t e   F u n d s

T A R G E T  2 0 5 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Target 2050 Fund
Domestic Equity Funds	58.7%
International Equity Funds	23.5
Fixed Income Funds	7.9
Money Market Fund	3.6
Real Estate Fund	3.3
Commodity Fund	3.0
	100.0%

22

P N C   T a r g e t   D a t e   F u n d s

T A R G E T  2 0 5 0  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(2)
	Date of Inception	1 Year	3 Years	5 Years	Since Inception	Max Sales Charge		Max CDSC			Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares	9/28/12	-2.56%	6.66%	N/A	8.25%		N/A		N/A		8.67%		0.83	%
Class T Shares(3)	4/28/15	0.72%	7.49%	N/A	8.85%		3.50%		1.00	%(4)	9.17%		1.33	%
S&P Target Date® to 2050 Index		-2.16%	6.24%	N/A	8.63%		N/A		N/A		N/A		N/A

⁽¹⁾ The S&P Target Date^® To 2050 Index seeks to represent investment opportunity generally available in target date funds through an asset allocation which targets a retirement horizon on or around 2050. The S&P Target Date^® To 2050 Index is designed to measure the performance of an investable asset allocation strategy that meets the investment objectives of investors with an approximate 2050 target retirement horizon. Investors cannot invest directly in an index. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses. The market cap range of the benchmark frequently changes. As a result, the capitalization of companies in which the Fund invests may also change.

⁽²⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund since the date of inception of its Class I and Class T Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽³⁾  Performance of Class T Shares assumes the deduction of the maximum sales charge.

⁽⁴⁾ This maximum applicable contingent deferred sales charge applies only to purchases of $1,000,000 or more of Class T Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers and expense reimbursements and inclusive of Acquired Fund fees and expenses, reflect expenses for Class I Shares from the September 28, 2015 Prospectus, as amended from time to time, and from the April 28, 2015 Prospectus, as amended from time to time, for the Class T Shares and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time. “Acquired Fund” means any investment company in which the Fund invests or has invested during the year.The Fund’s shareholders indirectly bear the operating expenses of the Fund’s underlying investments.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

23

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P N C  T a r g e t  D a t e  F u n d s

E X P L A N A T I O N  O F  E X P E N S E  T A B L E S  ( U n a u d i t e d)

The expenses shown in the Expense Tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), including contingent deferred sales charges, all of which are described in the Prospectus. If these transactional costs were included, your costs would be higher. The “Annualized Expense Ratio” reflects the actual expenses, net of fee waivers, where applicable, for the six-month period December 1, 2015 to May 31, 2016 and may be different from the expense ratio in the Financial Highlights which is for the fiscal year ended May 31, 2016. The “Annualized Expense Ratio” does not reflect Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were included, expenses would be higher.

All mutual funds have operating expenses. As a shareholder of a Fund, you incur operating expenses, including investment advisory fees, distribution (12b-1) fees and shareholder services fees, where applicable, and other Fund expenses. Such expenses, which are deducted from a Fund’s gross income, directly reduce the investment return of a Fund. A Fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The Expense Tables provided below are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the six-month period shown and held for the entire six-month period (December 1, 2015 to May 31, 2016).

The Expense Table for your Fund illustrates your Fund’s costs in two ways.

● Actual Expenses. This section helps you to estimate the actual expenses after fee waivers that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Class of the Fund under the heading “Expenses Paid During Period.”

● Hypothetical Example for Comparison Purposes. This section is intended to help you compare your Fund’s costs with those of other mutual funds. It is based on your Fund’s actual expense ratio and assumes that your Fund had an annual return of 5% before expenses during the period shown. In this case — because the return used is not your Fund’s actual return — the results may not be used to estimate your actual ending account value or expenses you paid during this period. The example is useful in making comparisons between your Fund and other funds because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on an assumed annual 5% return. You can assess your Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

	Beginning Account Value 12/01/15		Ending Account Value 05/31/16	Annual- ized Expense Ratio		Expenses Paid During Period(1)
Retirement Income Fund
Actual
Class I	$1,000.00	$	1,008.13	0.11	%	$0.55
Hypothetical(2)
Class I	1,000.00		1,024.45	0.11		0.56
Target 2020 Fund
Actual
Class I	$1,000.00	$	1,009.75	0.11	%	$0.55
Class T	1,000.00		1,007.89	0.39		1.96
Hypothetical(2)
Class I	1,000.00		1,024.45	0.11		0.56
Class T	1,000.00		1,023.05	0.39		1.97
Target 2030 Fund
Actual
Class I	$1,000.00	$	1,004.20	0.11	%	$0.55
Hypothetical(2)
Class I	1,000.00		1,024.45	0.11		0.56

	Beginning Account Value 12/01/15	Ending Account Value 05/31/16	Annual- ized Expense Ratio		Expenses Paid During Period(1)
Target 2040 Fund
Actual
Class I	$1,000.00	$998.14	0.11	%	$0.55
Class T	1,000.00	997.74	0.26		1.29
Hypothetical(2)
Class I	1,000.00	1,024.45	0.11		0.56
Class T	1,000.00	1,023.71	0.26		1.31
Target 2050 Fund
Actual
Class I	$1,000.00	$996.30	0.11	%	$0.55
Hypothetical(2)
Class I	1,000.00	1,024.45	0.11		0.56

⁽¹⁾  Expenses are equal to each Class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), then divided by 366.

⁽²⁾ Assumes annual return of 5% before expenses.

25

P N C  T a r g e t  D a t e  F u n d s	S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s
F I N A N C I A L  H I G H L I G H T S	F o r  t h e  Y e a r s  E n d e d  M a y  3 1 ,
	u n l e s s  o t h e r w i s e  i n d i c a t e d

	Retirement Income Fund(1)
	Class I
		2016			2015			2014			2013	(2)
Net Asset Value, Beginning of Year	$	10.52		$	10.73		$	10.24		$	10.00
Net Investment Income(3)(4)		0.14			0.15			0.12			0.10
Capital gain distributions received from affiliated investments(3)		0.02			0.02			–	*		0.04
Realized and Unrealized Gain (Loss) on Investments		(0.16	)		0.18			0.56			0.24
Total from Investment Operations		–			0.35			0.68			0.38
Dividends from Net Investment Income		(0.17	)		(0.22	)		(0.13	)		(0.14	)
Distributions from Net Realized Gains		(0.31	)		(0.34	)		(0.06	)		–
Total Distributions		(0.48	)		(0.56	)		(0.19	)		(0.14	)
Net Asset Value, End of Year	$	10.04		$	10.52		$	10.73		$	10.24
Total Return		0.04	%		3.28	%		6.67	%		3.85	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	3,693		$	2,617		$	1,107		$	1,038
Ratio of Expenses to Average Net Assets(5)		0.11	%		0.11	%		0.11	%		0.11	%
Ratio of Net Investment Income to Average Net Assets		1.37	%		1.45	%		1.11	%		1.54	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)(5)		5.04	%		6.83	%		3.39	%		12.55	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(3.56	)%		(5.27	)%		(2.17	)%		(10.90	)%
Portfolio Turnover Rate		104	%		194	%		318	%		0	%

* Amount represents less than $0.005 per share.

⁽¹⁾  At May 31, 2016, net assets of the Class T Shares represented initial seed capital. There was no other shareholder activity in this share class during the reporting period; therefore, no information is presented.

⁽²⁾  Class I commenced operations on October 1, 2012. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽³⁾  Per share data calculated using average shares outstanding method.

⁽⁴⁾  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

⁽⁵⁾  Does not include expenses of the investment companies in which the Fund invests.

See Notes to Financial Statements.

26

P N C  T a r g e t  D a t e  F u n d s	S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s
F I N A N C I A L  H I G H L I G H T S	F o r  t h e  Y e a r s  E n d e d  M a y  3 1 ,
	u n l e s s  o t h e r w i s e  i n d i c a t e d

	Target 2020 Fund
	Class I												Class T
		2016			2015			2014			2013	(1)		2016	(2)
Net Asset Value, Beginning of Year	$	11.48		$	11.17		$	10.45		$	10.00			$11.47
Net Investment Income(3)(4)		0.17			0.15			0.17			0.12			0.09
Capital gain distributions received from affiliated investments(3)		0.03			0.01			0.01			0.05			0.03
Realized and Unrealized Gain (Loss) on Investments		(0.29	)		0.33			0.77			0.41			(0.19	)
Total from Investment Operations		(0.09	)		0.49			0.95			0.58			(0.07	)
Dividends from Net Investment Income		(0.16	)		(0.14	)		(0.12	)		(0.13	)		(0.16	)
Distributions from Net Realized Gains		(0.21	)		(0.04	)		(0.11	)		–			(0.21	)
Total Distributions		(0.37	)		(0.18	)		(0.23	)		(0.13	)		(0.37	)
Net Asset Value, End of Year	$	11.02		$	11.48		$	11.17		$	10.45			$11.03
Total Return		(0.70	)%		4.47	%		9.19	%		5.89	%		(0.53	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	8,307		$	3,552		$	1,156		$	1,059			$3
Ratio of Expenses to Average Net Assets(5)		0.11	%		0.11	%		0.11	%		0.11	%		0.39	%
Ratio of Net Investment Income to Average Net Assets		1.57	%		1.35	%		1.60	%		1.77	%		0.79	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)(5)		2.67	%		5.58	%		9.21	%		12.47	%		2.40	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.99	)%		(4.12	)%		(7.50	)%		(10.59	)%		(1.22	)%
Portfolio Turnover Rate		39	%		124	%		9	%		0	%		39	%

⁽¹⁾  Class I commenced operations on October 1, 2012. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽²⁾  Class T commenced operations on April 28, 2015. Prior to February 9, 2016, net assets of this share class represented seed capital; therefore, no information is presented for the prior fiscal year.

⁽³⁾  Per share data calculated using average shares outstanding method.

⁽⁴⁾  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

⁽⁵⁾  Does not include expenses of the investment companies in which the Fund invests.

See Notes to Financial Statements.

27

	Target 2030 Fund(1)
	Class I
		2016			2015			2014			2013	(2)
Net Asset Value, Beginning of Year	$	12.48		$	11.89		$	10.69		$	10.00
Net Investment Income(3)(4)		0.20			0.17			0.18			0.11
Capital gain distributions received from affiliated investments(3)		0.03			0.02			0.01			0.03
Realized and Unrealized Gain (Loss) on Investments		(0.48	)		0.55			1.16			0.66
Total from Investment Operations		(0.25	)		0.74			1.35			0.80
Dividends from Net Investment Income		(0.19	)		(0.15	)		(0.12	)		(0.11	)
Distributions from Net Realized Gains		(0.30	)		–			(0.03	)		–
Total Distributions		(0.49	)		(0.15	)		(0.15	)		(0.11	)
Net Asset Value, End of Year		$11.74			$12.48			$11.89			$10.69
Total Return		(1.91	)%		6.27	%		12.74	%		8.12	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	9,004		$	4,110		$	1,601		$	1,205
Ratio of Expenses to Average Net Assets(5)		0.11	%		0.11	%		0.11	%		0.11	%
Ratio of Net Investment Income to Average Net Assets		1.73	%		1.40	%		1.63	%		1.55	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)(5)		2.51	%		4.66	%		7.83	%		12.32	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.67	)%		(3.15	)%		(6.09	)%		(10.66	)%
Portfolio Turnover Rate		18	%		70	%		5	%		0	%

⁽¹⁾  At May 31, 2016, net assets of the Class T Shares represented initial seed capital. There was no other shareholder activity in this share class during the reporting period; therefore, no information is presented.

⁽²⁾  Class I commenced operations on October 1, 2012. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽³⁾  Per share data calculated using average shares outstanding method.

⁽⁴⁾  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

⁽⁵⁾  Does not include expenses of the investment companies in which the Fund invests.

See Notes to Financial Statements.

28

P N C  T a r g e t  D a t e  F u n d s	S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s
F I N A N C I A L  H I G H L I G H T S	F o r  t h e  Y e a r s  E n d e d  M a y  3 1 ,
	u n l e s s  o t h e r w i s e  i n d i c a t e d

	Target 2040 Fund
	Class I												Class T
		2016			2015			2014			2013	(1)		2016	(2)
Net Asset Value, Beginning of Year	$	13.05		$	12.25		$	10.87		$	10.00		$	13.09
Net Investment Income(3)(4)		0.20			0.16			0.17			0.10			0.20
Capital gain distributions received from affiliated investments(3)		0.03			0.02			0.01			0.02			0.03
Realized and Unrealized Gain (Loss) on Investments		(0.59	)		0.79			1.41			0.84			(0.65	)
Total from Investment Operations		(0.36	)		0.97			1.59			0.96			(0.42	)
Dividends from Net Investment Income		(0.19	)		(0.17	)		(0.13	)		(0.09	)		(0.18	)
Distributions from Net Realized Gains		(0.79	)		–			(0.08	)		–			(0.79	)
Total Distributions		(0.98	)		(0.17	)		(0.21	)		(0.09	)		(0.97	)
Net Asset Value, End of Year	$	11.71		$	13.05		$	12.25		$	10.87		$	11.70
Total Return		(2.64	)%		8.00	%		14.72	%		9.74	%		(3.12	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	3,297		$	2,409		$	1,259		$	1,097		$	1
Ratio of Expenses to Average Net Assets(5)		0.11	%		0.11	%		0.11	%		0.11	%		0.21	%
Ratio of Net Investment Income to Average Net Assets		1.70	%		1.24	%		1.52	%		1.42	%		1.73	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)(5)		5.24	%		6.46	%		8.79	%		12.34	%		5.30	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(3.43	)%		(5.11	)%		(7.16	)%		(10.81	)%		(3.36	)%
Portfolio Turnover Rate		27	%		103	%		7	%		0	%		27	%

⁽¹⁾  Class I commenced operations on October 1, 2012. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽²⁾  Class T commenced operations on April 28, 2015. Prior to September 2, 2015, net assets of this share class represented seed capital; therefore, no information is presented for the prior fiscal year.

⁽³⁾  Per share data calculated using average shares outstanding method.

⁽⁴⁾  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

⁽⁵⁾  Does not include expenses of the investment companies in which the Fund invests.

See Notes to Financial Statements.

29

	Target 2050 Fund
	Class I												Class T
		2016			2015			2014			2013	(1)		2016			2015	(2)
Net Asset Value, Beginning of Year	$	13.21		$	12.41		$	10.93		$	10.00		$	13.22		$	13.31
Net Investment Income(3)(4)		0.15			0.18			0.17			0.10			0.14			–	*
Capital gain distributions received from affiliated investments(3)		0.01			0.03			0.01			0.01			0.01			–
Realized and Unrealized Gain (Loss) on Investments		(0.53	)		0.76			1.49			0.91			0.29			(0.09	)
Total from Investment Operations		(0.37	)		0.97			1.67			1.02			0.44			(0.09	)
Dividends from Net Investment Income		(0.22	)		(0.17	)		(0.13	)		(0.09	)		–			–
Distributions from Net Realized Gains		(4.03	)		–	*		(0.06	)		–			(4.03	)		–
Total Distributions		(4.25	)		(0.17	)		(0.19	)		(0.09	)		(4.03	)		–
Net Asset Value, End of Year	$	8.59		$	13.21		$	12.41		$	10.93		$	9.63		$	13.22
Total Return		(2.56	)%		7.88	%		15.41	%		10.28	%		4.38	%		(0.68	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	1,166		$	1,729		$	1,350		$	1,164		$	–	(5)	$	5
Ratio of Expenses to Average Net Assets(6)		0.11	%		0.11	%		0.11	%		0.11	%		0.59	%		0.65	%
Ratio of Net Investment Income (Loss) to Average Net Assets		1.50	%		1.37	%		1.48	%		1.38	%		1.05	%		(0.28	)%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)(6)		14.71	%		7.95	%		9.27	%		12.00	%		19.44	%		5.81	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(13.10	)%		(6.47	)%		(7.68	)%		(10.51	)%		(17.80	)%		(5.44	)%
Portfolio Turnover Rate		74	%		52	%		7	%		0	%		74	%		52	%

* Amount represents less than $0.005 per share.

⁽¹⁾  Class I commenced operations on October 1, 2012. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽²⁾  Class T commenced operations on April 28, 2015. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽³⁾  Per share data calculated using average shares outstanding method.

⁽⁴⁾  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

⁽⁵⁾  At May 31, 2016, net assets of the Class T Shares represented seed capital.

⁽⁶⁾  Does not include expenses of the investment companies in which the Fund invests.

See Notes to Financial Statements.

30

P N C  R e t i r em e n t  I n c o m e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Number		Value
	of Shares		(000)
MUTUAL FUNDS — 95.4%
Domestic Equity Funds — 18.3%
PNC Large Cap Growth Fund,
Class I Shares†		7,776	$	221
PNC Large Cap Value Fund,
Class I Shares†		10,417		224
PNC Multi-Factor Small Cap Core Fund,
Class I Shares†		2,941		60
PNC S&P 500 Index Fund,
Class I Shares†		6,930		113
PNC Small Cap Fund,
Class I Shares†		2,804		59
				677
Fixed Income Funds — 54.9%
Eaton Vance Floating-Rate Fund		5,693		50
PNC Bond Fund,
Class I Shares†		78,438		819
PNC High Yield Bond Fund,
Class I Shares†		12,947		95
PNC Limited Maturity Bond Fund,
Class I Shares†		79,473		808
Vanguard Inflation-Protected Securities Fund		9,694		254
				2,026
International Equity Funds — 6.4%
PNC International Equity Fund,
Class I Shares†		10,149		189
Vanguard Emerging Markets Stock Index Fund		1,708		48
				237
Money Market Fund — 13.9%
PNC Government Money Market Fund,
Class I Shares 0.080%† (A)		514,850		515
Real Estate Fund — 1.9%
Vanguard REIT Index Fund		576		68
Total Mutual Funds
(Cost $3,438)				3,523

	Number		Value
	of Shares		(000)
EXCHANGE-TRADED FUNDS — 5.0%
Domestic Equity Funds — 4.6%
iShares Select Dividend ETF†		677	$	56
SPDR® S&P® Dividend ETF		697		57
WisdomTree LargeCap Dividend Fund		754		56
				169
International Equity Funds — 0.4% iShares MSCI EAFE Small-Cap ETF†		148		8
Vanguard FTSE All World ex-US Small-Cap ETF		80		7
				15
Total Exchange-Traded Funds
(Cost $152)				184
TOTAL INVESTMENTS — 100.4%
(Cost $3,590)**				3,707
Other Assets & Liabilities – (0.4)%				(14	)
TOTAL NET ASSETS — 100.0%			$	3,693

** Aggregate cost for Federal income tax purposes is (000) $ 3,593.

Gross unrealized appreciation (000)	$120
Gross unrealized depreciation (000)	(6	)
Net unrealized appreciation (000)	$114

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

31

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Exchange-Traded Funds		$	184		$	–		$	–		$	184
Mutual Funds			3,523			–			–			3,523
Total Assets - Investments in Securities		$	3,707		$	–		$	–		$	3,707

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

32

P N C  T a r g e t  D a t e  F u n d s

S C H E D U L E  O F  I N V E S T M E N T S

M a y 3 1,  2 0 1 6

	Number		Value
	of Shares		(000)
MUTUAL FUNDS — 91.7%
Domestic Equity Funds — 23.8%
PNC Large Cap Growth Fund,
Class I Shares†		22,801	$	648
PNC Large Cap Value Fund,
Class I Shares†		30,691		658
PNC Multi-Factor Small Cap Core Fund,
Class I Shares†		8,225		168
PNC S&P 500 Index Fund,
Class I Shares†		20,433		333
PNC Small Cap Fund,
Class I Shares†		7,895		167
				1,974
Fixed Income Funds — 47.1%
Eaton Vance Floating-Rate Fund		17,035		148
PNC Bond Fund,
Class I Shares†		177,411		1,852
PNC High Yield Bond Fund,
Class I Shares†		34,912		257
PNC Limited Maturity Bond Fund,
Class I Shares†		106,600		1,084
Vanguard Inflation-Protected Securities Fund		21,753		571
				3,912
International Equity Funds — 9.3%
PNC International Equity Fund,
Class I Shares†		33,647		625
Vanguard Emerging Markets Stock Index Fund		5,427		152
				777
Money Market Fund — 7.8%
PNC Government Money Market Fund,
Class I Shares 0.080%† (A)		648,195		648
Real Estate Fund — 3.7%
Vanguard REIT Index Fund		2,604		309
Total Mutual Funds
(Cost $7,416)				7,620

	Number		Value
	of Shares		(000)
EXCHANGE-TRADED FUNDS — 8.6%
Commodity Fund — 2.7%
PowerShares DB Commodity Index
Tracking Fund*		15,361	$	226
Domestic Equity Funds — 5.3%
iShares Select Dividend ETF†		1,756		146
SPDR® S&P® Dividend ETF		1,788		146
WisdomTree LargeCap Dividend Fund		1,946		145
				437
International Equity Funds — 0.6%
iShares MSCI EAFE Small-Cap ETF†		492		25
Vanguard FTSE All World ex-US Small-Cap ETF		261		25
				50
Total Exchange-Traded Funds
(Cost $643)				713
TOTAL INVESTMENTS — 100.3%
(Cost $8,059)**				8,333
Other Assets & Liabilities – (0.3)%				(23	)
TOTAL NET ASSETS — 100.0%			$	8,310

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $8,132.

Gross unrealized appreciation (000)	$308
Gross unrealized depreciation (000)	(107	)
Net unrealized appreciation (000)	$201

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

33

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Exchange-Traded Funds		$	713		$	–		$	–		$	713
Mutual Funds			7,620			–			–			7,620
Total Assets - Investments in Securities		$	8,333		$	–		$	–		$	8,333

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

34

P N C  T a r g e t  2 0 3 0  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Number		Value
	of Shares		(000)
MUTUAL FUNDS — 87.9%
Domestic Equity Funds — 35.4%
PNC Large Cap Growth Fund,
Class I Shares†		36,838	$	1,047
PNC Large Cap Value Fund,
Class I Shares†		49,618		1,064
PNC Multi-Factor Small Cap Core Fund,
Class I Shares†		13,261		271
PNC S&P 500 Index Fund,
Class I Shares†		33,028		538
PNC Small Cap Fund,
Class I Shares†		12,746		269
				3,189
Fixed Income Funds — 28.2%
Eaton Vance Floating-Rate Fund		18,884		164
PNC Bond Fund,
Class I Shares†		157,086		1,640
PNC High Yield Bond Fund,
Class I Shares†		35,032		258
PNC Limited Maturity Bond Fund,
Class I Shares†		21,676		220
Vanguard Inflation-Protected Securities Fund		9,712		255
				2,537
International Equity Funds — 15.3%
PNC International Equity Fund,
Class I Shares†		57,979		1,077
Vanguard Emerging Markets Stock Index Fund		10,756		301
				1,378
Money Market Fund — 5.1%
PNC Government Money Market Fund,
Class I Shares 0.080%† (A)		456,865		457
Real Estate Fund — 3.9%
Vanguard REIT Index Fund		2,989		355
Total Mutual Funds
(Cost $7,712)				7,916

	Number		Value
	of Shares		(000)
EXCHANGE-TRADED FUNDS — 12.2%
Commodity Fund — 3.2%
PowerShares DB Commodity Index
Tracking Fund*		19,857	$	292
Domestic Equity Funds — 7.5%
iShares Select Dividend ETF†		2,701		224
SPDR® S&P® Dividend ETF		2,749		225
WisdomTree LargeCap Dividend Fund		2,992		223
				672
International Equity Funds — 1.5%
iShares MSCI EAFE Small-Cap ETF†		1,321		68
Vanguard FTSE All World ex-US Small-Cap ETF		701		67
				135
Total Exchange-Traded Funds
(Cost $1,022)				1,099
TOTAL INVESTMENTS — 100.1%
(Cost $8,734)**				9,015
Other Assets & Liabilities – (0.1)%				(11	)
TOTAL NET ASSETS — 100.0%			$	9,004

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $ 8,744.

Gross unrealized appreciation (000)	$368
Gross unrealized depreciation (000)	(97	)
Net unrealized appreciation (000)	$271

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

35

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Exchange-Traded Funds		$	1,099		$	–		$	–		$	1,099
Mutual Funds			7,916			–			–			7,916
Total Assets - Investments in Securities		$	9,015		$	–		$	–		$	9,015

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

36

P N C  T a r g e t  2 0 4 0  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Number		Value
	of Shares		(000)
MUTUAL FUNDS — 85.0%
Domestic Equity Funds — 44.2%
PNC Large Cap Growth Fund,
Class I Shares†		16,797		$    478
PNC Large Cap Value Fund,
Class I Shares†		22,640		485
PNC Multi-Factor Small Cap Core Fund,
Class I Shares†		6,128		125
PNC S&P 500 Index Fund,
Class I Shares†		15,083		246
PNC Small Cap Fund,
Class I Shares†		5,888		124
				1,458
Fixed Income Funds — 13.1%
Eaton Vance Floating-Rate Fund		4,054		35
PNC Bond Fund,
Class I Shares†		30,843		322
PNC High Yield Bond Fund,
Class I Shares†		7,329		54
Vanguard Inflation-Protected Securities Fund		808		21
				432
International Equity Funds — 19.0%
PNC International Equity Fund,
Class I Shares†		25,997		483
Vanguard Emerging Markets Stock Index Fund		5,089		143
				626
Money Market Fund — 5.3%
PNC Government Money Market Fund,
Class I Shares 0.080%† (A)		173,484		173
Real Estate Fund — 3.4%
Vanguard REIT Index Fund		954		113
Total Mutual Funds
(Cost $2,706)				2,802

	Number		Value
	of Shares		(000)
EXCHANGE-TRADED FUNDS — 15.4%
Commodity Fund — 3.2%
PowerShares DB Commodity Index Tracking Fund*		7,213		$    106
Domestic Equity Funds — 9.7%
iShares Select Dividend ETF†		1,276		106
SPDR® S&P® Dividend ETF		1,316		107
WisdomTree LargeCap Dividend Fund		1,415		106
				319
International Equity Funds — 2.5%
iShares MSCI EAFE Small-Cap ETF†		812		42
Vanguard FTSE All World ex-US Small-Cap ETF		439		42
				84
Total Exchange-Traded Funds (Cost $456)				509
TOTAL INVESTMENTS — 100.4% (Cost $3,162)**				3,311
Other Assets & Liabilities – (0.4)%				(13	)
TOTAL NET ASSETS — 100.0%				$3,298

* Non-income producing security.

**  Aggregate cost for Federal income tax purposes is (000) $ 3,178.

Gross unrealized appreciation (000)	$192
Gross unrealized depreciation (000)	(59	)
Net unrealized appreciation (000)	$133

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

37

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Exchange-Traded Funds		$	509		$	–		$	–		$	509
Mutual Funds			2,802			–			–			2,802
Total Assets - Investments in Securities		$	3,311		$	–		$	–		$	3,311

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

38

P N C  T a r g e t  2 0 5 0  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Number of Shares		Value (000)
MUTUAL FUNDS — 85.0%
Domestic Equity Funds — 48.8%
PNC Large Cap Growth Fund,
Class I Shares†		6,608		$    188
PNC Large Cap Value Fund,
Class I Shares†		8,749		188
PNC Multi-Factor Small Cap Core Fund,
Class I Shares†		2,406		49
PNC S&P 500 Index Fund,
Class I Shares†		5,779		94
PNC Small Cap Fund,
Class I Shares†		2,356		50
				569
Fixed Income Funds — 8.0%
Eaton Vance Floating-Rate Fund		834		7
PNC Bond Fund,
Class I Shares†		6,578		69
PNC High Yield Bond Fund,
Class I Shares†		1,530		11
Vanguard Inflation-Protected Securities Fund		224		6
				93
International Equity Funds — 21.2%
PNC International Equity Fund,
Class I Shares†		10,129		188
Vanguard Emerging Markets Stock Index Fund		2,109		59
				247
Money Market Fund — 3.7%
PNC Government Money Market Fund,
Class I Shares 0.080%† (A)		43,142		43
Real Estate Fund — 3.3%
Vanguard REIT Index Fund		325		39
Total Mutual Funds
(Cost $949)				991

	Number		Value
	of Shares		(000)
EXCHANGE-TRADED FUNDS — 16.3%
Commodity Fund — 3.0%
PowerShares DB Commodity Index Tracking Fund*		2,367		$    35
Domestic Equity Funds — 10.6%
iShares Select Dividend ETF†		498		42
SPDR® S&P® Dividend ETF		504		41
WisdomTree LargeCap Dividend Fund		554		41
				124
International Equity Funds — 2.7%
iShares MSCI EAFE Small-Cap ETF†		311		15
Vanguard FTSE All World ex-US Small-Cap ETF		167		16
				31
Total Exchange-Traded Funds (Cost $165)				190
TOTAL INVESTMENTS — 101.3% (Cost $1,114)**				1,181
Other Assets & Liabilities – (1.3)%				(15	)
TOTAL NET ASSETS — 100.0%				$1,166

*  Non-income producing security.

**  Aggregate cost for Federal income tax purposes is (000) $1,114.

Gross unrealized appreciation (000)	$77
Gross unrealized depreciation (000)	(10	)
Net unrealized appreciation (000)	$67

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

39

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Exchange-Traded Funds		$	190		$	–		$	–		$	190
Mutual Funds			991			–			–			991
Total Assets - Investments in Securities		$	1,181		$	–		$	–		$	1,181

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

40

P N C  T a r g e t  D a t e  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Retirement Income Fund				Target 2020 Fund				Target 2030 Fund
ASSETS
Investments in non-affiliates at value		$	540			$	1,722			$	1,882
Investments in affiliates at value			3,167				6,611				7,133
Total Investments at value			3,707				8,333				9,015
Receivable for shares of beneficial interest issued			–				–				1
Dividends and interest receivable			3				7				5
Receivable from Adviser			10				12				12
Prepaid expenses			5				7				8
Total Assets			3,725				8,359				9,041
LIABILITIES
Payable for shares of beneficial interest redeemed			–				13				–
Administration fees payable			4				4				4
Custodian fees payable			8				8				8
Transfer agent fees payable			7				7				7
Trustees’ fees payable			3				6				7
Other liabilities			10				11				11
Total Liabilities			32				49				37
TOTAL NET ASSETS		$	3,693			$	8,310			$	9,004
Investments in non-affiliates at cost		$	501			$	1,627			$	1,818
Investments in affiliates at cost			3,089				6,432				6,916
Total Investments at cost		$	3,590			$	8,059				8,734
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	3,569			$	8,122			$	8,732
Undistributed (Distributions in Excess of) Net Investment Income			4				36				22
Accumulated Net Realized Gain (Loss) on Investments			3				(122	)			(31	)
Net Unrealized Appreciation/Depreciation on Investments			117				274				281
Total Net Assets		$	3,693			$	8,310			$	9,004
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	3,692,927			$	8,307,404			$	9,003,785
Class I shares outstanding			367,841				753,553				766,973
Net Asset Value, Offering and Redemption Price Per Share		$	10.04			$	11.02			$	11.74
Net assets applicable to Class T(1)		$	10.18			$	3,078			$	9.90
Class T shares outstanding			0.990				279				0.828
Net Asset Value and Redemption Price Per Share		$	10.28			$	11.03			$	11.96
Maximum Offering Price Per Share(2)		$	10.65			$	11.43			$	12.39
Maximum Sales Charge Per Share			3.50	%			3.50	%			3.50	%

⁽¹⁾ At May 31, 2016, net assets of the T Shares of the Retirement Income Fund and the Target 2030 Fund represented initial seed capital. There was no other shareholder activity in this share class during the reporting period.

⁽²⁾ Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

See Notes to Financial Statements.

41

	Target 2040 Fund				Target 2050     Fund
ASSETS
Investments in non-affiliates at value		$	673			$	244
Investments in affiliates at value			2,638				937
Total Investments at value			3,311				1,181
Receivable for shares of beneficial interest issued			1				2
Dividends and interest receivable			1				–
Receivable from Adviser			10				8
Prepaid expenses			5				4
Total Assets			3,328				1,195
LIABILITIES
Administration fees payable			4				4
Custodian fees payable			8				8
Transfer agent fees payable			7				7
Trustees’ fees payable			3				1
Other liabilities			8				9
Total Liabilities			30				29
TOTAL NET ASSETS		$	3,298			$	1,166
Investments in non-affiliates at cost		$	644			$	227
Investments in affiliates at cost			2,518				887
Total Investments at cost		$	3,162			$	1,114
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	3,154			$	1,084
Undistributed (Distributions in Excess of) Net Investment Income			2				1
Accumulated Net Realized Gain (Loss) on Investments			(7	)			14
Net Unrealized Appreciation/Depreciation on Investments			149				67
Total Net Assets		$	3,298			$	1,166
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	3,296,694			$	1,166,445
Class I shares outstanding			281,479				135,713
Net Asset Value, Offering and Redemption Price Per Share		$	11.71			$	8.59
Net assets applicable to Class T(1)		$	1,521			$	10.36
Class T shares outstanding			130				1.076
Net Asset Value and Redemption Price Per Share		$	11.70			$	9.63
Maximum Offering Price Per Share(2)		$	12.12			$	9.98
Maximum Sales Charge Per Share			3.50	%			3.50	%

⁽¹⁾  At May 31, 2016, net assets of the T Shares of the Target 2050 Fund represented seed capital.

⁽²⁾  Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

See Notes to Financial Statements.

42

P N C  T a r g e t  D a t e  F u n d s

S T A T E M E N T S  O F  O P E R A T I O N S  ( 0 0 0 )

F o r  t h e  Y e a r  E n d e d  M a y  3 1 ,  2 0 1 6

	Retirement Income Fund				Target 2020     Fund
Investment Income:
Dividends from unaffiliated investments		$	10			$	31
Dividends from affiliated investments(1)			29				67
Total Investment Income			39				98
Expenses:
Administration fees			35				36
Transfer agent fees			21				21
Custodian fees			14				15
Professional fees			23				32
Pricing service fees			1				1
Printing and shareholder reports			2				2
Registration and filing fees			25				27
Trustees’ fees			8				13
Miscellaneous			4				8
Total Expenses			133				155
Less:
Adviser expense reimbursement(1)			(130	)			(149	)
Net Expenses			3				6
Net Investment Income (Loss)			36				92
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on unaffiliated investments sold			(3	)			(52	)
Net realized gain (loss) on affiliated investments sold(1)			6				(71	)
Capital gain distributions received from affiliated investments			6				19
Net change in unrealized appreciation/depreciation on unaffiliated investments			19				84
Net change in unrealized appreciation/depreciation on affiliated investments			15				87
Net Gain (Loss) on Investments			43				67
Net Increase (Decrease) in Net Assets Resulting from Operations		$	79			$	159

⁽¹⁾ See Note 3 in Notes to Financial Statements.

See Notes to Financial Statements.

43

Target 2030 Fund				Target 2040 Fund			Target 2050 Fund
	$	41			$  17			$     6
		77			31			8
		118			48			14
		36			35			35
		21			21			21
		15			15			15
		33			26			21
		1			1			1
		2			2			3
		29			26			24
		13			8			5
		11			5			1
		161			139			126
		(154	)		(136	)		(126	)
		7			3			–
		111			45			14
		(36)			(18	)		3
		(21)			8			98
		21			7			2
		41			–			(10	)
		21			(54	)		(109	)
		26			(57	)		(16	)
	$	137			$  (12	)		$    (2	)

See Notes to Financial Statements.

44

P N C  T a r g e t  D a t e  F u n d s

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S  ( 0 0 0 )

	Retirement Income Fund								Target 2020 Fund
	For the Year Ended								For the Year Ended
	May 31, 2016				May 31, 2015				May 31, 2016				May 31, 2015
Investment Activities:
Net investment income (loss)		$	36			$	30			$	92			$	27
Net realized gain (loss) on investments sold and capital gain distributions received from affiliated investments			9				59				(104	)			74
Net change in unrealized appreciation/depreciation on investments			34				(6	)			171				(5	)
Net increase (decrease) in net assets resulting from operations			79				83				159				96
Dividends to Shareholders:
Dividends from net investment income:
Class I			(35	)			(38	)			(71	)			(18	)
Distributions from net realized gains:
Class I			(57	)			(155	)			(91	)			(6	)
Total dividends and distributions			(92	)			(193	)			(162	)			(24	)
Share Transactions:
Proceeds from shares issued:
Class I			3,587				5,941				6,631				4,042
Class T			–				–				3				–
Reinvestment of dividends and distributions:
Class I			93				194				162				24
Total proceeds from shares issued and reinvested			3,680				6,135				6,796				4,066
Value of shares redeemed:
Class I			(2,591	)			(4,515	)			(2,035	)			(1,742	)
Class T			–				–				–				–
Total value of shares redeemed			(2,591	)			(4,515	)			(2,035	)			(1,742	)
Increase (decrease) in net assets from share transactions			1,089				1,620				4,761				2,324
Total increase (decrease) in net assets			1,076				1,510				4,758				2,396
Net Assets:
Beginning of year			2,617				1,107				3,552				1,156
End of year*		$	3,693			$	2,617			$	8,310			$	3,552
*Including undistributed (distributions in excess of) net investment income		$	4			$	2			$	36			$	13

See Notes to Financial Statements.

45

Target 2030 Fund						Target 2040 Fund							Target 2050 Fund
For the Year Ended						For the Year Ended							For the Year Ended
May 31, 2016			May 31, 2015				May 31, 2016			May 31, 2015				May 31, 2016			May 31, 2015
	$   111			$     36				$     45			$      21				$      14		$     20
	(36	)		140				(3	)		154				103		162
	62			3				(54	)		(21	)			(119	)	(66)
	137			179				(12	)		154				(2	)	116
	(93	)		(27	)			(41	)		(17	)			(14	)	(19)
	(145	)		–				(169	)		–				(257	)	(1)
	(238	)		(27	)			(210	)		(17	)			(271	)	(20)
	5,422			3,254				1,614			2,167				642		511
	–			–				2			–				–		5
	238			27				210			18				270		19
	5,660			3,281				1,826			2,185				912		535
	(665	)		(924	)			(715	)		(1,172	)			(1,202	)	(247)
	–			–				–			–				(5	)	–
	(665	)		(924	)			(715	)		(1,172	)			(1,207	)	(247)
	4,995			2,357				1,111			1,013				(295	)	288
	4,894			2,509				889			1,150				(568	)	384
	4,110			1,601				2,409			1,259				1,734		1,350
	$9,004			$4,110				$3,298			$ 2,409				$ 1,166		$1,734
	$     22			$     15				$       2			$        7				$        1		$       3

See Notes to Financial Statements.

46

P N C  E q u i t y  F u n d s

B A L A N C E D  A L L O C A T I O N  F U N D  O V E R V I E W    ( U n a u d i t e d )

Michael Coleman

Equity Analyst

Portfolio Manager

Since 2016

Mark McGlone

President, Chief Investment

Officer

Portfolio Manager

Since 2012

Martin C. Schulz, J.D.

Managing Director,

International Equity

Portfolio Manager

Since 2012

Jason Weber, CFA

Fixed Income Analyst

Portfolio Manager

Since 2016

Asset allocation cannot guarantee a profit or prevent a loss. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s net asset value will decline due to rising interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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. Investments in small and mid capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

47

PNC Balanced Allocation Fund seeks to provide long-term capital appreciation and current income by investing in a diversified portfolio of common stocks, fixed income securities and cash equivalents with varying asset allocations.

How did the Fund perform during the annual period?

During the annual period, PNC Balanced Allocation Fund returned -3.24% to Class C Shares investors⁽¹⁾ and -1.43% to Class I Shares investors. The Fund’s benchmark, a 60% S&P 500^® Index⁽²⁾ and 40% Barclays U.S. Aggregate Bond Index⁽³⁾ blend⁽⁴⁾, returned 2.46%.

During the period, fixed income (Barclays Aggregate) outperformed equities, returning 3.0%. Domestic large-cap equities largely outperformed other major equity classes, with the S&P 500^® returning 1.7%. Domestic small-cap equities (Russell 2000), international equities (MSCI ACWI ex USA), and emerging market equities (MSCI EM) produced negative returns at -6.0%, -11.0%, and -17.3%, respectively. Treasury Inflation-Protected Securities (Barclays TIPS) returned 1.2%.

What factors most significantly affected the Fund’s performance during the annual period?

● Allocation overall detracted from the Fund’s relative results during the annual period due primarily to allocations to international developed equities and emerging market equities. Although the Fund’s overall equity allocation remained, on average, slightly below the blended benchmark weight during the annual period, the returns of international developed equities and emerging market equities — along with U.S. small-cap equities — underperformed U.S. large cap equities as represented in the equity portion of the blended benchmark, and such exposure detracted from relative performance. Additionally, a modest cash investment position underperformed the fixed income allocation.

º Fixed income returns were modestly positive during the annual period and outperformed U.S. large-cap equities.

º International developed equities, emerging market equities and U.S. small-cap equities produced losses during the annual period.

● Selection overall had a neutral effect on the Fund’s relative results during the annual period

º Within the equity portion of the Fund, the actively managed, dividend-focused investments outperformed the S&P 500^® Index during the annual period. Detracting from the Fund’s relative results during the annual period were small-cap equity and international equity investments, which lagged the S&P 500^® Index during the annual period given increased market volatility and slow global economic growth.

º The fixed income portion of the Fund underperformed the Barclays U.S. Aggregate Bond Index during the annual period driven in part by duration and credit exposure positioning. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

What portfolio changes were made during the reporting period?

º The Fund’s equity allocation remained below the blended benchmark throughout. The equity allocation was reduced to 56% in July and August 2015, as the portfolio management team became concerned about equity market valuations and heightened risks to earnings. Post the market correction in August 2015, the portfolio management team added 2% to the Fund’s equity allocation, where it remained for the rest of the annual period.

P N C  E q u i t y  F u n d s

B A L A N C E D  A L L O C A T I O N  F U N D  O V E R V I E W    ( U n a u d i t e d )

º The Fund’s fixed income allocation rose with the reduction in the equity allocation during July and August 2015, where it remained until mid-December 2015. At that time, the portfolio management team added a 2% Fund position in Treasury inflation-protected investments given our expectation of rising future inflation. Additionally, the portfolio management team remains concerned about the low level of interest rates and possible diverging monetary policies within developed economies.

º The Fund’s cash position fluctuated during the annual period but remained overweight throughout to deploy funds as needed to other attractive asset classes.

Portfolio Holdings

Asset Allocation
Equity Securities	60.8	%
Fixed Income Securities	37.5
Cash	1.7
	100.0	%

The tables present portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Balanced Allocation Fund
Common Stocks	33.3%
Exchange-Traded Funds	14.7
Foreign Common Stocks	12.6
Corporate Bonds	12.3
U.S. Treasury Obligations	11.6
U.S. Government Agency Mortgage-Backed Obligations	10.5
Asset-Backed Securities	2.9
Money Market Fund	1.7
Transportation Revenue Bond	0.2
Master Limited Partnerships	0.2
	100.0%

48

P N C  E q u i t y  F u n d s

B A L A N C E D  A L L O C A T I O N  F U N D  O V E R V I E W    (U n a u d i t e d)

Average Annual Total Returns as of 05/31/16(5)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception			Max Sales Charge			Max CDSC			Total Gross Fund Operating Expenses (7)			Total Net Fund Operating Expenses (7)
Class I Shares		7/10/98		-1.43	%		5.24	%		6.14	%		5.02	%		4.78	%		N/A			N/A			1.21	%		1.01	%
Class A Shares(1)		7/31/98		-6.36	%		3.30	%		4.82	%		4.25	%		4.25	%		4.75	%		1.00	%(6)		1.50	%		1.30	%
Class C Shares		4/20/00		-3.24	%(1)		4.26	%		5.11	%		3.99	%		3.76	%		N/A			1.00	%		2.21	%		2.01	%
Class T Shares(1)		4/28/15		-4.16	%		3.84	%		5.08	%		4.13	%		N/A			3.50	%		1.00	%(6)		1.71	%		1.51	%
60/40 Hybrid of the S&P 500® Index/Barclays U.S. Aggregate Bond Index				2.46	%		7.90	%		8.47	%		6.74	%		4.78	%		N/A			N/A			N/A			N/A
Barclays U.S. Aggregate Bond Index				2.99	%		2.91	%		3.33	%		4.97	%		5.20	%		N/A			N/A			N/A			N/A
S&P 500® Index				1.72	%		11.06	%		11.67	%		7.41	%		5.45	%		N/A			N/A			N/A			N/A

⁽¹⁾  Performance of Class A and Class T Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The S&P 500^® Index, a widely used, unmanaged index of 500 common stocks, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The Barclays U.S. Aggregate Bond Index, an unmanaged market value weighted index of fixed income securities, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽⁴⁾  The 60/40 Hybrid of S&P 500^® Index and Barclays U.S. Aggregate Bond Index is a blend of 60% S&P 500^® Index and 40% Barclays U.S. Aggregate Bond Index, as calculated by the Adviser.

⁽⁵⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A and Class T Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception returns for the benchmarks reflect the closest month end to the inception date of Class I Shares of the Fund.

⁽⁶⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A and Class T Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁷⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than shown here. Performance data current to the most recent month-end is available at pncfunds.com.

49

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P N C  E q u i t y  F u n d s

I N T E R N A T I O N A L  E Q U I T Y  F U N D  O V E R V I E W    ( U n a u d i t e d )

Martin C. Schulz, J.D.

Managing Director,

International Equity

Portfolio Manager

Since 1998

 

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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

51

PNC International Equity Fund seeks to provide long-term capital appreciation by investing in a portfolio of equity securities that are tied economically to a number of countries throughout the world, typically three or more.

Effective February 29, 2016, the Fund changed its benchmark from the MSCI EAFE^® Index to the MSCI ACWI ex USA Index to enable comparison of the Fund to its investment universe by capturing both developed and emerging markets. This change does not represent a change to the Fund’s investment process or PNC Capital Advisors’ views on investing internationally. Selection of the MSCI ACWI ex USA Index as its benchmark reflected the Fund’s typical emerging market exposure.

How did the Fund perform during the annual period?

During the annual period, PNC International Equity Fund returned -9.77% to Class C Shares investors⁽¹⁾ and -8.02% to Class I Shares investors. The Fund’s benchmark, the MSCI ACWI ex USA Index⁽²⁾ (the “Index”), returned -11.39%. The Fund’s former benchmark, the MSCI EAFE^® Index⁽²⁾, returned -9.68%.

What factors most significantly affected the Fund’s performance during the annual period?

● While absolute returns were disappointing, effective individual security selection and top-down country allocation decisions overall within the Fund contributed favorably to its relative results during the annual period. Sector allocation as a whole detracted slightly.

● Security selection was most effective within the healthcare, information technology and consumer discretionary sectors. Having an underweighted allocation to financials, which was the second-weakest sector in the Index during the annual period, further boosted the Fund’s relative results. Having an allocation to cash during a period when the Index declined added value as well.

● Only partially offsetting these positive factors was the detracting effect of weaker stock selection in energy. Having an underweight to consumer staples, which was the best performing sector in the Index during the annual period, and an overweight to materials, which was the weakest performing sector in the Index during the annual period, also detracted from relative performance.

● From a country perspective, individual security selection was most effective within Germany, followed by Sweden, Spain and Japan. Having overweighted allocations to Thailand, Ireland and India, which each significantly outpaced the Index during the annual period, also contributed positively to the Fund’s performance.

● Conversely, weaker stock selection in Hong Kong, Norway and France detracted from Fund results. Also negatively impacting Fund performance were having an underweight to Canada, which outpaced the Index during the annual period, and positioning in China.

● Amongst individual positions, Japan-based specialty pharmaceutical company ONO Pharmaceutical, Germany-based banking machine and cash register manufacturer Wincor Nixdorf and Sweden-based international biotechnology firm Vitrolife contributed most positively to the Fund’s relative results during the annual period.

● Conversely, holdings in China-based automotive retailer CAR, Hong Kong-based lottery machine provider REXLot Holdings and U.K.-based oil and gas exploration and production company Tullow Oil detracted most from the Fund’s relative performance during the annual period.

P N C  E q u i t y  F u n d s

I N T E R N A T I O N A L  E Q U I T Y  F U N D  O V E R V I E W    ( U n a u d i t e d )

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

International Equity Fund
United Kingdom	15.7	%
Germany	14.5
Japan	11.7
Sweden	5.7
France	5.5
Switzerland	4.1
Norway	3.5
Denmark	3.0
Twenty other countries	29.9
Money Market Fund	6.4
	100.0	%

52

P N C  E q u i t y  F u n d s

I N T E R N A T I O N A L  E Q U I T Y  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(5)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception			Max Sales Charge			Max CDSC			Total Gross Fund Operating Expenses (5)			Total Net Fund Operating Expenses (5)
Class I Shares		8/1/97		-8.02	%		4.46	%		4.13	%		4.01	%		4.81	%		N/A			N/A			1.10	%		0.99	%
Class A Shares(1)		8/1/97		-13.35	%		2.20	%		2.68	%		3.14	%		4.21	%		5.50	%		1.00	%(4)		1.40	%		1.29	%
Class C Shares		1/5/00		-9.77	%(1)		3.51	%		3.16	%		3.01	%		3.83	%		N/A			1.00	%		2.10	%		1.99	%
MSCI ACWI ex USA Index				-11.39	%		0.19	%		0.12	%		2.01	%		N/A			N/A			N/A			N/A			N/A
MSCI EAFE® Index				-9.68	%		2.00	%		2.12	%		1.92	%		3.64	%		N/A			N/A			N/A			N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  Effecive February 29, 2016, the MSCI All CountryWorld ex USA Index (“MSCI ACWI ex USA Index”) replaced the MSCI Europe, Australasia, Far East Index (“MSCI EAFE^® Index”), an unmanaged index comprised of more than 1,000 equity securities of foreign companies, as the Fund’s benchmark. The MSCI ACWI ex USA Index, an unmanaged index capturing larger, mid- and small-cap representation across 22 of 23 Developed Markets countries (excluding the United States) and 23 Emerging Markets countries, more accurately reflects the Fund’s investment universe. Each index is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

53

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P N C   E q u i t y   F u n d s

I N T E R N A T I O N A L  G R O W T H  F U N D  O V E R V I E W    ( U n a u d i t e d )

Martin C. Schulz, J.D.

Managing Director,

International Equity

Portfolio Manager

Since 2016

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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

55

PNC International Growth Fund seeks to provide long-term capital appreciation by primarily investing in a portfolio of equity securities that are tied economically to a number of countries throughout the world, typically three or more.

The PNC International Growth Fund launched on February 29, 2016.

How did the Fund perform during the period from its inception on February 29, 2016 through May 31, 2016 (the “reporting period”)?

During the reporting period, PNC International Growth Fund returned 3.12% to Class A Shares investors⁽¹⁾ and 9.20% to Class I Shares investors. The Fund’s benchmark, the MSCI ACWI ex USA Growth Index⁽²⁾ (the “Index”), returned 8.49%.

What factors most significantly affected the Fund’s performance during the reporting period?

● Effective individual security selection and top-down country allocation decisions overall within the Fund contributed favorably to its relative results during the reporting period. Sector allocation as a whole detracted slightly.

● Security selection was most effective within the healthcare, information technology, consumer staples and consumer discretionary sectors.

● Only partially offsetting these positive factors was the detracting effect of weaker stock selection in materials. Having an overweight to health care, which lagged the Index during the reporting period, also detracted from relative performance. Having a position in cash during a period when the Index rallied dampened relative results as well.

● From a country perspective, individual security selection was most effective within Japan, followed by United Arab Emirates, India and the Netherlands. Conversely, positioning in Germany, Bermuda, South Korea and Spain detracted from Fund results.

● Amongst individual positions, Japan-based medical equipment developer Cyberdyne, United Arab Emirates-based diversified healthcare company NMC Health and Japan-based consumer electronics giant Sony contributed most positively to the Fund’s relative results during the reporting period.

● Conversely, holdings in China-based automotive retailer CAR, Germany-based food preparation appliance manufacturer Rational and Israel-based renewable energy equipment provider SolarEdge Technologies detracted most from the Fund’s relative performance during the reporting period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

International Growth Fund
Japan	16.7	%
United Kingdom	13.8
Germany	10.7
Denmark	6.0
Switzerland	6.0
France	4.3
Sweden	3.8
Netherlands	3.7
Fifteen other countries	28.0
Money Market Fund	6.3
Exchange-Traded Fund	0.7
	100.0	%

P N C  E q u i t y  F u n d s

I N T E R N A T I O N A L  G R O W T H  F U N D  O V E R V I E W    ( U n a u d i t e d )

Total Returns as of 05/31/16(3)

Date of Inception

1 Year

3 Years

5 Years

10 Years

Since Inception

Max Sales Charge

Max CDSC

Total Gross Fund Operating Expenses (5)

Total Net Fund Operating Expenses  (5)

Class I Shares

2/29/16

N/A

N/A

N/A

N/A

9.20

%

N/A

N/A

6.56

%

0.86

%

Class A Shares(1)

2/29/16

N/A

N/A

N/A

N/A

3.12

%

5.50

%

1.00

%(4)

6.82

%

1.12

%

MSCI ACWI ex USA Growth Index

N/A

N/A

N/A

N/A

8.49

%

N/A

N/A

N/A

N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge.

⁽²⁾  The MSCI All Country World Index (“ACWI”) ex USA Growth Index is designed to measure the performance of growth companies within developed and emerging equity markets, excluding the U.S. and frontier markets. The index is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund since its date of inception. The graph shows performance of its Class I and Class A Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the February 29, 2016 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

56

P N C  E q u i t y  F u n d s

L A R G E  C A P  C O R E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Douglas J. Roman, CFA,

CMT

Managing Director,

Large Cap Funds

Portfolio Manager

Since 2009

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

57

PNC Large Cap Core Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of domestic large-cap companies.

How did the Fund perform during the annual period?

During the annual period, PNC Large Cap Core Fund returned -2.66% to Class C Shares investors⁽¹⁾ and -0.74% to Class I Shares investors. The Fund’s benchmark, the S&P 500^® Index⁽²⁾ (the “Index”), returned 1.72%.

What factors most significantly affected the Fund’s performance during the annual period?

● Stock selection detracted most from the Fund’s performance relative to the Index during the annual period. Sector allocation overall contributed positively, albeit modestly.

● Individual security selection within the information technology, consumer discretionary and financials sectors detracted most from the Fund’s relative results.

● Only partially offsetting these detractors was individual stock selection in the healthcare and industrials sectors, which contributed positively to the Fund’s results during the annual period. Having an underweighted allocation to energy, which was the weakest sector in the Index during the annual period, also buoyed the Fund’s relative results.

● The biggest individual detractors from relative performance included wireless semiconductor company Skyworks Solutions, semiconductor company NXP Semiconductors and social networking website operator Facebook.

● The biggest positive individual contributors to returns included cardiovascular medical device manufacturer Edwards Lifesciences, aerospace and defense company Northrop Grumman and alcoholic beverage producer Constellation Brands.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Large Cap Core Fund
Information Technology	17.1	%
Consumer Discretionary	14.3
Financials	14.0
Healthcare	13.7
Industrials	12.8
Consumer Staples	10.3
Energy	5.5
Utilities	4.1
Materials	4.0
Telecommunication Services	1.8
Money Market Fund	1.3
Exchange-Traded Fund	1.1
	100.0	%

P N C  E q u i t y  F u n d s

L A R G E  C A P  C O R E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception			Max Sales Charge			Max CDSC			Total Gross Fund Operating Expenses (5)			Total Net Fund Operating Expenses  (5)
Class I Shares		8/1/97		-0.74	%		11.38	%		10.58	%		5.89	%		5.97	%		N/A			N/A			1.25	%		0.90	%
Class A Shares(1)		8/1/97		-6.41	%		9.03	%		9.08	%		4.94	%		5.35	%		5.50	%		1.00	%(4)		1.53	%		1.18	%
Class C Shares		1/20/00		-2.66	%(1)		10.33	%		9.50	%		4.78	%		4.92	%		N/A			1.00	%		2.25	%		1.90	%
S&P 500® Index				1.72	%		11.06	%		11.67	%		7.41	%		6.23	%		N/A			N/A			N/A			N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The S&P 500^® Index, a widely used, unmanaged index of 500 common stocks, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

58

P N C  E q u i t y  F u n d s

L A R G E  C A P  G R O W T H  F U N D  O V E R V I E W    ( U n a u d i t e d )

Douglas J. Roman, CFA, CMT

Managing Director,

Large Cap Funds

Portfolio Manager

Since 2009

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

59

PNC Large Cap Growth Fund seeks to provide long-term capital appreciation by investing in a diversified portfolio of growth-oriented domestic large-cap equity securities.

How did the Fund perform during the annual period?

During the annual period, PNC Large Cap Growth Fund returned -4.65% to Class C Shares investors⁽¹⁾ and -2.89% to Class I Shares investors. The Fund’s benchmark, the Russell 1000^® Growth Index⁽²⁾ (the “Index”), returned 1.61%.

What factors most significantly affected the Fund’s performance during the annual period?

● Stock selection detracted most from the Fund’s performance relative to the Index during the annual period. Sector allocation overall also detracted, albeit more modestly.

● Individual security selection within the information technology and consumer discretionary sectors negatively impacted the Fund’s relative results most. Having an overweighted allocation to energy, which was by far the weakest performing sector in the Index during the annual period, also detracted. To a lesser degree, stock selection in financials and telecommunication services further dampened relative results.

● These detractors were only partially offset by the positive contribution of effective individual stock selection in the energy, industrials and healthcare sectors.

● Among the biggest individual detractors from performance were social networking website operator Facebook, wireless semiconductor company Skyworks Solutions and real estate and investment management services provider Jones Lang LaSalle.

● The biggest positive individual contributors to returns included cardiovascular medical device manufacturer Edwards Lifesciences, alcoholic beverage producer Constellation Brands and tobacco company Altria Group.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Large Cap Growth Fund
Information Technology	25.7	%
Consumer Discretionary	22.6
Healthcare	14.2
Industrials	13.2
Consumer Staples	12.2
Materials	5.0
Financials	3.6
Money Market Fund	2.0
Utilities	1.0
Exchange-Traded Fund	0.5
	100.0	%

P N C   E q u i t y   F u n d s

L A R G E  C A P  G R O W T H  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16⁽³⁾

										Total Gross	Total Net
										Fund	Fund
										Operating	Operating
	Date of						Since	Max Sales		Expenses	Expenses
	Inception		1 Year	3 Years	5 Years	10 Years	Inception	Charge	Max CDSC	(5)	(5)
Class I Shares		12/20/89	-2.89%	12.28%	11.20%	6.18%	7.61%	N/A	N/A	1.04%	0.90%
Class A Shares(1)		4/15/91	-8.47%	9.92%	9.69%	5.32%	7.11%	5.50%	1.00%(4)	1.34%	1.20%
Class C Shares		1/27/00	-4.65%(1)	11.42%	10.25%	5.21%	6.75%	N/A	1.00%	2.04%	1.90%
Russell 1000® Growth Index			1.61%	12.50%	12.11%	8.78%	8.89%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Russell 1000^® Growth Index, an unmanaged index of 1,000 of the largest U.S. companies with higher price-to-book ratios and higher forecasted growth values, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

60

P N C   E q u i t y   F u n d s

L A R G E  C A P  V A L U E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Douglas J. Roman, CFA, CMT

Managing Director,

Large Cap Funds

Portfolio Manager

Since 2009

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

61

PNC Large Cap Value Fund seeks to provide long-term capital appreciation by investing in a diversified portfolio of value-oriented, domestic equity securities of large-cap companies.

How did the Fund perform during the annual period?

During the annual period, PNC Large Cap Value Fund returned -2.62% to Class C Shares
investors⁽¹⁾ and -0.80% to Class I Shares investors. The Fund’s benchmark, the Russell 1000^® Value Index⁽²⁾ (the “Index”), returned -0.06%.

What factors most significantly affected the Fund’s performance during the annual period?

● Individual security selection detracted from the Fund’s relative performance during the annual period. Sector allocation overall contributed positively, albeit modestly.

● Detracting from the Fund’s relative results most was stock selection in the financials, healthcare and information technology sectors. Stock selection in and having an overweighted allocation to consumer discretionary, which lagged the Index during the annual period, also dampened the Fund’s performance.

● Effective security selection in the energy, industrials and utilities sectors contributed most favorably to the Fund’s results. Having an underweighted allocation to energy, the weakest performing sector in the Index during the annual period, further buoyed the Fund’s results.

● The biggest individual detractors included real estate and investment management services provider Jones Lang LaSalle, financial planning and services firm Ameriprise Financial and software giant Microsoft.

● The most significant individual contributors to performance included tobacco company Reynolds American, self-storage real estate investment trust Extra Space Storage and water and wastewater utilities company American Water Works Company.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Large Cap Value Fund
Financials	24.8	%
Energy	11.5
Industrials	11.3
Healthcare	10.7
Information Technology	10.2
Consumer Staples	7.7
Utilities	7.6
Consumer Discretionary	7.3
Materials	4.3
Telecommunication Services	2.7
Exchange-Traded Fund	1.1
Money Market Fund	0.8
	100.0	%

P N C   E q u i t y   F u n d s

L A R G E  C A P  V A L U E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
										Total Gross	Total Net
										Fund	Fund
										Operating	Operating
	Date of						Since	Max Sales		Expenses	Expenses
	Inception		1 Year	3 Years	5 Years	10 Years	Inception	Charge	Max CDSC	(5)	(5)
Class I Shares		7/1/94	-0.80%	9.53%	10.03%	5.27%	8.11%	N/A	N/A	1.00%	0.90%
Class A Shares(1)		8/22/94	-6.56%	7.22%	8.53%	4.40%	7.54%	5.50%	1.00%(4)	1.30%	1.20%
Class C Shares		1/27/00	-2.62%(1)	8.66%	9.07%	4.29%	7.10%	N/A	1.00%	2.00%	1.90%
Russell 1000® Value Index			-0.06%	9.23%	10.70%	6.11%	9.67%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Russell 1000^® Value Index, an unmanaged index of 1,000 of the largest U.S. companies with lower price-to-book ratios and lower forecasted growth values, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

62

P N C   E q u i t y   F u n d s

M I D  C A P  F U N D  O V E R V I E W    ( U n a u d i t e d )

James E. Mineman

Managing Director and

Co-Lead Portfolio

Manager,

Select Equity

Portfolio Manager

Since 2013

Peter A. Roy

Managing Director and

Co-Lead Portfolio

Manager,

Select Equity

Portfolio Manager

Since 2013

Investments in mid-sized companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

63

PNC Mid Cap Fund seeks to provide long-term capital appreciation by investing in a diversified portfolio of domestic equity securities of mid-cap companies.

How did the Fund perform during the annual period?

During the annual period, PNC Mid Cap Fund returned -11.38% to Class C Shares investors⁽¹⁾ and -9.65% to Class I Shares investors. The Fund’s benchmark, the Russell MidCap^® Index⁽²⁾ (the “Index”), returned -1.97%.

What factors most significantly affected the Fund’s performance during the annual period?

● Security selection overall detracted from the Fund’s results. Sector allocation decisions as a whole contributed positively, albeit modestly.

● Detracting most from the Fund’s relative results was security selection within the financials, industrials, and consumer discretionary sectors. Hampering results most from an allocation perspective was having no exposure to utilities, which was the best performing sector in the Index during the annual period. Having an overweight to consumer discretionary, which significantly lagged the Index during the annual period, also detracted from relative performance.

● Only partially offsetting these detractors was the positive contribution made by effective security selection in the energy sector. Having underweights to energy and healthcare, which each lagged the Index during the annual period, added favorably to relative performance as well.

● The biggest individual detractors from returns included outsourced receivables management provider PRA Group, electrical equipment producer OSI Systems and aerospace and defense industry parts supplier Esterline Technologies, each an out-of-Index position that performed poorly during the annual period.

● The most significant individual contributors to performance included property and casualty insurance company RLI, packaged food manufacturer TreeHouse Foods and bank Eagle Bancorp, each an out-of-Index position that performed well during the annual period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Mid Cap Fund
Financials	32.0	%
Consumer Discretionary	22.8
Industrials	18.0
Information Technology	16.3
Consumer Staples	5.7
Healthcare	2.1
Money Market Fund	2.1
Energy	1.0
	100.0	%

P N C  E q u i t y  F u n d s

M I D  C A P  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16⁽⁴⁾

	Date of Inception		1 Year	3 Years	5 Years	10 Years	Since Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares		7/1/02	-9.65%	4.49%	6.03%	4.30%	7.77%	N/A	N/A	1.85%	1.25%
Class A Shares(1)		7/1/02	-14.84%	2.33%	4.63%	3.48%	7.05%	5.50%	1.00%(3)	2.11%	1.51%
Class C Shares		6/2/03	-11.38%(1)	3.53%	5.03%	3.30%	6.73%	N/A	1.00%	2.85%	2.25%
Russell Midcap® Index			-1.97%	10.18%	10.33%	8.03%	10.11%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Russell Midcap^® Index measures the performance of the mid-cap segment of the U.S. equity universe and is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses.

⁽³⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁴⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception returns for the benchmarks reflect the closest month end to the inception date of Class I Shares of the Fund.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

64

P N C  E q u i t y  F u n d s

M I D  C A P  I N D E X  F U N D  O V E R V I E W    ( U n a u d i t e d )

Hitesh C. Patel, PhD Managing Director,

Structured Equity

Portfolio Manager

Since 2013

Investments in mid-sized companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

65

PNC Mid Cap Index Fund seeks to approximate, before fund expenses, the investment results of the S&P MidCap 400^® Index.

How did the Fund perform during the period?

During the annual period, PNC Mid Cap Index Fund returned -0.85% to Class I Shares investors and -0.84% to Class R4 Shares investors. The Fund’s benchmark, the S&P MidCap 400^® Index⁽¹⁾ (the “Index”), returned -0.42%.

What factors most significantly affected the Fund’s performance during the period?

● Only three of the ten sectors within the Index generated gains during the annual period, while seven posted negative absolute returns.

● The weakest performing sector within the Index was energy, followed at some distance by consumer discretionary and information technology. Utilities was the best performing sector within the Index, posting a double-digit gain. Financials and materials also advanced during the annual period, albeit more modestly.

● The worst performing individual stocks within the Index on an absolute basis were semiconductor and semiconductor equipment company SunEdison, coal producer Peabody Energy and oil and gas exploration and production company California Resources, each of which experienced a double-digit decline during the annual period.

● On an absolute basis, the best performing individual stocks within the Index were semiconductor and semiconductor equipment company Advanced Micro Devices, food products staples company Post Holdings and information technology services provider Computer Sciences, each of which generated a robust double-digit total return during the annual period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Mid Cap Index Fund
Financials	26.4	%
Information Technology	16.2
Industrials	14.6
Consumer Discretionary	11.6
Healthcare	8.3
Materials	6.9
Utilities	5.9
Consumer Staples	4.2
Energy	2.8
Money Market Fund	1.7
Exchange-Traded Fund	1.2
Telecommunication Services	0.2
	100.0	%

P N C   E q u i t y   F u n d s

M I D  C A P  I N D E X  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16⁽²⁾

										Total Gross	Total Net
										Fund	Fund
										Operating	Operating
	Date of						Since	Max Sales		Expenses	Expenses
	Inception		1 Year	3 Years	5 Years	10 Years	Inception	Charge	Max CDSC	(3)	(3)
Class I Shares		12/30/13	-0.85%	N/A	N/A	N/A	5.70%	N/A	N/A	2.67%	0.25%
Class R4 Shares		12/30/13	-0.84%	N/A	N/A	N/A	5.71%	N/A	N/A	2.82%	0.40%
S&P MidCap 400® Index			-0.42%	N/A	N/A	N/A	6.11%	N/A	N/A	N/A	N/A

⁽¹⁾  The S&P MidCap 400^® Index, a market-weighted index consisting of 400 mid-cap stocks, with each stock affecting the Index in proportion to its market value, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes,transaction costs, management fees, or other expenses.

⁽²⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund since the date of inception of its Class I and Class R4 Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽³⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

66

P N C  E q u i t y  F u n d s

M U L T I - F A C T O R  S M A L L  C A P  C O R E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Hitesh C. Patel, PhD

Managing Director,

Structured Equity

Portfolio Manager

Since 2005

Investments in small companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

67

PNC Multi-Factor Small Cap Core Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of small-cap equity securities that possess both value and growth characteristics.

How did the Fund perform during the annual period?

During the annual period, PNC Multi-Factor Small Cap Core Fund returned -8.80% to Class A Shares investors⁽¹⁾ and -3.20% to Class I Shares investors. The Fund’s benchmark, the Russell 2000^® Index⁽²⁾ (the “Index”), returned -5.97%.

What factors most significantly affected the Fund’s performance during the annual period?

● Our multi-factor systematic approach to stock selection focuses on companies with reasonable valuations, improving fundamentals and increasing awareness of investor behavior, which helped us during the annual period, as our model carries individual factors like cash flow to price, free cash flow to enterprise value, sales growth, earnings growth, estimate revision change and earnings estimate dispersion. Risk management in portfolio construction also factored into relative results favorably.

● While absolute returns were disappointing, individual security selection contributed most positively to the Fund’s outperformance of the Index during the annual period. Sector allocation decisions overall also boosted relative results, albeit more modestly.

● Security selection within healthcare, industrials, energy and consumer discretionary proved particularly effective.

● Detracting from results was security selection within the financials, information technology and utilities sectors.

● The biggest positive individual contributors to performance included building products companies Universal Forest Products and American Woodmark of the industrials sector and healthcare equipment and supplies company Cantel Medical.

● The greatest individual detractors from performance included biotechnology firm Sorrento Therapeutics, real estate investment trust United Development Funding IV and specialty retail company Shoe Carnival.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Multi-Factor Small Cap Core Fund
Financials	24.6	%
Information Technology	16.2
Industrials	15.9
Healthcare	13.5
Consumer Discretionary	11.8
Materials	6.7
Consumer Staples	2.8
Utilities	2.4
Energy	2.3
Master Limited Partnerships	1.7
Money Market Fund	1.5
Telecommunication Services	0.6
	100.0	%

P N C  E q u i t y  F u n d s

M U L T I - F A C T O R  S M A L L  C A P  C O R E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16⁽³⁾

									Total Gross	Total Net
									Fund	Fund
									Operating	Operating
	Date of					Since	Max Sales		Expenses	Expenses
	Inception	1 Year	3 Years	5 Years	10 Years	Inception	Charge	Max CDSC	(5)	(5)
Class I Shares	9/30/05	-3.20%	10.30%	12.43%	6.97%	7.63%	N/A	N/A	1.12%	0.85%
Class A Shares(1)	9/30/05	-8.80%	7.93%	10.88%	6.09%	6.78%	5.50%	1.00%(4)	1.42%	1.15%
Russell 2000® Index		-5.97%	6.93%	7.86%	6.27%	6.70%	N/A	N/A	N/A	N/A

⁽¹⁾ Performance of Class A Shares assumes the deduction of the maximum sales charge.

⁽²⁾  The Russell 2000^® Index, an unmanaged index of companies widely representative of small capitalization companies based on market capitalization, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for its Class I and Class A Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

⁽⁴⁾  This maximum applicable contingent deferred sales charge (“Max CDSC”) applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

68

P N C  E q u i t y  F u n d s

M U L T I - F A C T O R  S M A L L  C A P  G R O W T H  F U N D  O V E R V I E W    ( U n a u d i t e d )

Hitesh C. Patel, PhD

Managing Director,

Structured Equity

Portfolio Manager

Since 2005

Investments in small companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

69

PNC Multi-Factor Small Cap Growth Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of growth-oriented small cap equity securities.

How did the Fund perform during the annual period?

During the annual period, PNC Multi-Factor Small Cap Growth Fund returned -5.42% to Class C Shares investors⁽¹⁾ and -3.63% to Class I Shares investors. The Fund’s benchmark, the Russell 2000^® Growth Index⁽²⁾ (the “Index”), returned -9.13%.

What factors most significantly affected the Fund’s performance during the annual period?

● Our multi-factor systematic approach to stock selection focuses on companies with reasonable valuations, improving fundamentals and increasing awareness of investor behavior, which helped us during the annual period, as our model carries individual factors like cash flow to price, free cash flow to enterprise value, sales growth, earnings growth, estimate revision change and earnings estimate dispersion. Risk management in portfolio construction also factored into relative results favorably.

● While absolute returns were disappointing, security selection decisions contributed most positively to the Fund’s outperformance of the Index during the annual period. Sector allocation decisions overall also contributed positively, albeit more modestly, to relative results.

● Security selection within the healthcare sector was particularly strong. Security selection within industrials, consumer staples and materials also proved effective. Having overweighted allocations to financials and materials, which each outpaced the Index during the annual period, further buoyed relative results.

● Partially offsetting these positives was weaker security selection within the consumer discretionary and information technology sectors. Detracting most from a sector allocation perspective was having an underweighted position in information technology, which outperformed the Index during the annual period.

● Top individual contributors to performance included software provider SolarWinds, machinery company John Bean Technologies and biotechnology firm Radius Health.

● The biggest individual detractors included specialty retail company Francesca’s Holdings, household durables company Zagg and healthcare providers and services company Molina Healthcare.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Multi-Factor Small Cap Growth Fund
Information Technology	22.9	%
Healthcare	21.6
Consumer Discretionary	15.7
Industrials	15.3
Financials	10.2
Materials	6.9
Consumer Staples	2.9
Money Market Fund	2.5
Master Limited Partnership	1.1
Telecommunication Services	0.9
	100.0	%

P N C  E q u i t y  F u n d s

M U L T I - F A C T O R  S M A L L  C A P  G R O W T H  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of     Inception	1 Year	3 Years	5 Years	10 Years	Since     Inception	Max Sales     Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares	9/30/05	-3.63%	10.18%	10.63%	7.39%	7.47%	N/A	N/A	1.46%	0.85%
Class A Shares(1)	9/30/05	-9.17%	7.85%	9.11%	6.52%	6.64%	5.50%	1.00%(4)	1.76%	1.15%
Class C Shares	9/30/05	-5.42%(1)	9.16%	9.58%	6.75%	6.93%	N/A	1.00%	2.46%	1.85%
Russell 2000® Growth Index		-9.13%	7.68%	8.15%	7.20%	7.48%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Russell 2000^® Growth Index, an unmanaged index of 2,000 small-company stocks that have higher than average price-to-book ratios and forecasted growth values, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

70

P N C  E q u i t y  F u n d s

M U L T I - F A C T O R  S M A L L  C A P  V A L U E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Hitesh C. Patel, PhD

Managing Director,

Structured Equity

Portfolio Manager

Since 2005

Investments in small companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

71

PNC Multi-Factor Small Cap Value Fund seeks to provide long-term capital appreciation by investing primarily in stocks of small-cap companies that are believed to be conservatively valued.

How did the Fund perform during the annual period?

During the annual period, PNC Multi-Factor Small Cap Value Fund returned -7.22% to Class C Shares investors⁽¹⁾ and -5.49% to Class I Shares investors. The Fund’s benchmark, the Russell 2000^® Value Index⁽²⁾ (the “Index”), returned -2.75%.

What factors most significantly affected the Fund’s performance during the annual period?

● Our multi-factor systematic approach to stock selection focuses on companies with reasonable valuations, improving fundamentals and increasing awareness of investor behavior, and our model carries individual factors like cash flow to price, free cash flow to enterprise value, sales growth, earnings growth, estimate revision change and earnings estimate dispersion. Risk management in portfolio construction also factored into relative results. The investment team’s multi-factor strategies tend to outperform in trending markets and in down markets. Market transitions such as that experienced during the annual period tend to present challenges to the team’s process.

● Security selection decisions detracted from the Fund’s relative results during the annual period. Sector allocation decisions overall contributed positively.

● Detracting most from results was security selection within the financials, information technology and industrials sectors.

● Security selection proved most effective within the consumer discretionary, materials and utilities sectors. Having an underweighted allocation to energy, by far the weakest performing sector in the Index during the annual period, also buoyed relative performance.

● The biggest individual detractors included capital markets financials firm Carlyle Group, L.P., consumable fuels energy company BP Prudhoe Bay RoyaltyTrust and biotechnology company Anthera Pharmaceuticals.

● Individual stocks having a positive impact on performance included gas utilities company Piedmont Natural Gas, consumer discretionary distributor Pool and electronic equipment instruments and components company Sanmina-SCI.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Multi-Factor Small Cap Value Fund
Financials	43.1	%
Industrials	12.3
Information Technology	12.2
Consumer Discretionary	6.9
Utilities	6.9
Healthcare	3.9
Consumer Staples	3.4
Energy	3.3
Master Limited Partnerships	2.9
Materials	2.7
Money Market Fund	2.0
Telecommunication Services	0.4
	100.0	%

P N C  E q u i t y  F u n d s

M U L T I - F A C T O R  S M A L L  C A P  V A L U E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of     Inception	1 Year	3 Years	5 Years	10 Years	Since     Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares	7/26/94	-5.49%	8.91%	9.17%	4.03%	9.92%	N/A	N/A	1.45%	0.85%
Class A Shares(1)	8/15/94	-10.96%	6.67%	7.70%	3.19%	9.33%	5.50%	1.00%(4)	1.75%	1.15%
Class C Shares	1/27/00	-7.22%(1)	8.05%	8.20%	3.06%	8.90%	N/A	1.00%	2.45%	1.85%
Russell 2000® Value Index		-2.75%	6.10%	7.55%	5.25%	9.87%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Russell 2000^® Value Index, an unmanaged index of companies that have lower than average price-to-book ratios and forecasted growth values, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

72

P N C  E q u i t y  F u n d s

S & P  5 0 0  I N D E X  F U N D  O V E R V I E W    (U n a u d i t e d)

Hitesh C. Patel, PhD

Managing Director,

Structured Equity

Portfolio Manager

Since 2005

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

73

PNC S&P 500 Index Fund seeks to approximate, before fund expenses, the investment results of the S&P 500^® Index.

How did the Fund perform during the annual period?

During the annual period, PNC S&P 500 Index Fund returned -0.83% to Class C Shares investors⁽¹⁾ and 1.08% to Class I Shares investors. The Fund’s benchmark, the S&P 500^® Index⁽²⁾ (the “Index”), returned 1.72%.

What factors most significantly affected the Fund’s performance during the annual period?

● Six of the ten sectors within the Index generated solid gains during the annual period, but four posted negative absolute returns.

● The best performing sectors within the Index were utilities, telecommunication services and consumer staples, which each posted double-digit positive returns. Energy, materials, healthcare and financials were the weakest sectors, each posting a negative return.

● On an absolute basis, the best performing individual stocks within the Index were semiconductor device company NVIDIA, e-commerce retailing giant Amazon.com and information technology services provider Computer Sciences, each of which generated a robust total return during the annual period.

● The worst performing individual stocks within the S&P 500^® Index on an absolute basis were specialty pharmaceuticals company Endo International and oil and gas exploration and production companies California Resources and Chesapeake Energy, each of which experienced double-digit declines during the annual period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

S&P 500 Index Fund
Information Technology	19.3	%
Financials	17.0
Healthcare	14.5
Consumer Discretionary	12.6
Consumer Staples	10.0
Industrials	9.9
Energy	6.9
Utilities	3.2
Materials	2.8
Telecommunication Services	2.6
Money Market Fund	1.2
	100.0	%

P N C  E q u i t y  F u n d s

S & P  5 0 0  I N D E X  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares		7/10/98		1.08	%		10.67	%		11.31	%		7.13	%	5.05%	N/A	N/A	0.32%	0.20%
Class A Shares(1)		10/15/98		-1.64	%		9.52	%		10.49	%		6.58	%	4.64%	2.50%	0.50%(4)	0.57%	0.45%
Class C Shares		1/17/00		-0.83	%(1)		9.60	%		10.22	%		6.06	%	4.00%	N/A	1.00%	1.32%	1.20%
Class R4 Shares		12/30/13		0.94	%		10.59	%		11.26	%		7.10	%	5.02%	N/A	N/A	0.47%	0.35%
Class R5 Shares		12/30/13		1.04	%		10.65	%		11.30	%		7.12	%	5.05%	N/A	N/A	0.37%	0.25%
S&P 500® Index				1.72	%		11.06	%		11.67	%		7.41	%	5.45%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The S&P 500^® Index, a widely used, unmanaged index of 500 common stocks, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A, Class C, Class R4 and Class R5 Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable.Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

74

P N C  F u n d s

S M A L L  C A P  F U N D  O V E R V I E W    (U n a u d i t e d)

James E. Mineman

Managing Director and

Co-Lead Portfolio

Manager,

Select Equity

Portfolio Manager

Since 2004

Peter A. Roy

Managing Director and

Co-Lead Portfolio

Manager,

Select Equity

Portfolio Manager

Since 2004

Investments in small capitalization companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

75

PNC Small Cap Fund seeks to provide long-term capital appreciation by investing primarily in stocks of U.S. small-cap companies.

How did the Fund perform during the annual period?

During the annual period, PNC Small Cap Fund returned -7.14% to Class C Shares investors⁽¹⁾ and -5.34% to Class I Shares investors. The Fund’s benchmark, the Russell 2000^® Index⁽²⁾ (the “Index”), returned -5.97%.

What factors most significantly affected the Fund’s performance during the annual period?

● Security selection overall detracted, albeit modestly, from the Fund’s results. Sector allocation decisions as a whole contributed positively.

● Individual stock selection in the financials, industrials, and consumer staples sectors detracted most during the annual period. Having no exposure to utilities, the best performing sector in the Index during the annual period, also detracted from relative performance.

● Partially offsetting these detractors was security selection in the healthcare, consumer discretionary, information technology, energy, and materials sectors, which contributed favorably during the annual period. Having underweighted allocations to healthcare and energy, which were the two worst performing sectors in the Index during the annual period, also added value.

● The biggest individual detractors included purchaser of charged-off consumer debt PRA Group, electrical equipment producer OSI Systems and aerospace and defense industry parts supplier Esterline Technologies.

● The most significant positive individual contributors to performance included bank Eagle Bancorp, application software provider Manhattan Associates and real estate services provider FirstService.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Small Cap Fund
Financials	31.9	%
Consumer Discretionary	19.8
Industrials	17.9
Information Technology	11.9
Healthcare	6.9
Money Market Fund	4.2
Materials	3.6
Consumer Staples	2.1
Energy	1.7
	100.0	%

P N C  E q u i t y  F u n d s

S M A L L  C A P  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception			Max Sales Charge			Max CDSC			Total Gross Fund Operating Expenses (5)			Total Net Fund Operating Expenses (5)
Class I Shares		4/2/04		-5.34	%		7.21	%		11.42	%		7.13	%		7.73	%		N/A			N/A			1.15	%		0.99	%
Class A Shares(1)		4/2/04		-10.80	%		4.90	%		9.88	%		6.24	%		6.94	%		5.50	%		1.00	%(4)		1.45	%		1.29	%
Class C Shares		4/2/04		-7.14	%(1)		6.17	%		10.34	%		6.08	%		6.71	%		N/A			1.00	%		2.15	%		1.99	%
Russell 2000® Index				-5.97	%		6.93	%		7.86	%		6.27	%		7.09	%		N/A			N/A			N/A			N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Russell 2000^® Index, an unmanaged index of companies widely representative of small capitalization companies based on market capitalization, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

76

P N C  E q u i t y  F u n d s

S M A L L  C A P  I N D E X  F U N D  O V E R V I E W    ( U n a u d i t e d )

Hitesh C. Patel, PhD

Managing Director,

Structured Equity

Portfolio Manager

Since 2013

Investments in small companies present greater risk of loss than investments in large companies.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

77

PNC Small Cap Index Fund seeks to approximate, before fund expenses, the investment results of the Russell 2000^® Index.

How did the Fund perform during the period?

During the annual period, PNC Small Cap Index Fund returned -4.96% to Class I Shares and -5.05% to Class R4 Shares investors. The Fund’s benchmark, the Russell 2000^® Index⁽¹⁾ (the “Index”), returned -5.97%.

What factors most significantly affected the Fund’s performance during the period?

● Only four of the ten sectors within the Index generated gains during the annual period, while six posted negative absolute returns.

● The weakest performing sector within the Index by some distance was energy, followed by healthcare, consumer discretionary and materials, which each generated a double-digit negative return. Utilities and telecommunication services were the best performing sectors within the Index, each posting a double-digit gain. Consumer staples and financials also advanced during the annual period, albeit more modestly.

● The worst performing individual stocks within the Index on an absolute basis were capital markets financials company RCS Capital, oil, gas and consumable fuels company Magnum Hunter Resources and media company SFX Entertainment, each of which experienced double-digit declines during the annual period.

● On an absolute basis, the best performing individual stocks within the Index were diversified consumer services provider Weight Watchers International, insurance company Phoenix Companies and semiconductor and semiconductor equipment company MaxLinear, each of which generated a robust triple-digit total return during the annual period.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Small Cap Index Fund
Financials	25.8	%
Information Technology	17.8
Healthcare	13.3
Industrials	13.0
Consumer Discretionary	12.9
Materials	4.3
Utilities	3.4
Consumer Staples	3.3
Energy	2.6
Exchange Traded Fund	2.1
Telecommunication Services	0.8
Money Market Fund	0.7
Rights	–	*
Warrants	–	*
	100.0	%

* Amount represents less than 0.1%.

P N C  E q u i t y  F u n d s

S M A L L  C A P  I N D E X  F U N D  O V E R V I E W    ( U n a u d i t e d )

Total Returns as of 05/31/16(2)

Date of Inception

1 Year

3 Years

5 Years

10 Years

Since Inception

Max Sales Charge

Max CDSC

Total Gross Fund Operating Expenses (3)

Total Net Fund Operating Expenses (3)

Class I Shares

12/30/13

-4.96%

N/A

N/A

N/A

1.82%

N/A

N/A

2.69%

0.29%

Class R4 Shares

12/30/13

-5.05%

N/A

N/A

N/A

1.79%

N/A

N/A

2.84%

0.44%

Russell 2000® Index

-5.97%

N/A

N/A

N/A

1.05%

N/A

N/A

N/A

N/A

⁽¹⁾  The Russell 2000^® Index, an unmanaged index of companies widely representative of small capitalization companies based on market capitalization, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽²⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund since the date of inception of its Class I and Class R4 Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽³⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

78

P N C  E q u i t y  F u n d s

E X P L A N A T I O N  O F  E X P E N S E  T A B L E S    ( U n a u d i t e d )

The expenses shown in the Expense Tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), including contingent deferred sales charges, all of which are described in the Prospectus. If these transactional costs were included, your costs would be higher. The “Annualized Expense Ratio” reflects the actual expenses, net of fee waivers, where applicable, for the six-month period December 1, 2015 to May 31, 2016 and may be different from the expense ratio in the Financial Highlights which is for the fiscal year ended May 31, 2016. The “Annualized Expense Ratio” does not reflect Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were included, expenses would be higher.

All mutual funds have operating expenses. As a shareholder of a Fund, you incur operating expenses, including investment advisory fees, distribution (12b-1) fees and shareholder services fees, where applicable, and other Fund expenses. Such expenses, which are deducted from a Fund’s gross income, directly reduce the investment return of a Fund. A Fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The Expense Tables provided below are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the six-month period shown and held for the entire six-month period (December 1, 2015 to May 31, 2016).

The Expense Table that appears in your Fund’s overview illustrates your Fund’s costs in two ways.

• Actual Expenses. This section helps you to estimate the actual expenses after fee waivers that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Class of Fund under the heading “Expenses Paid During Period.”

• Hypothetical Example for Comparison Purposes. This section is intended to help you compare your Fund’s costs with those of other mutual funds. It is based on your Fund’s actual expense ratio and assumes that your Fund had an annual return of 5% before expenses during the period shown. In this case — because the return used is not your Fund’s actual return — the results may not be used to estimate your actual ending account value or expenses you paid during this period. The example is useful in making comparisons between your Fund and other funds because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on an assumed annual 5% return. You can assess your Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

	Beginning Account Value 12/01/15		Ending Account Value 05/31/16		Annual- ized Expense Ratio		Expenses Paid During Period(1)
Balanced Allocation Fund
Actual
Class I		$1,000.00		$1,003.52		0.95%		$4.76
Class A		1,000.00		1,002.27		1.23		6.14
Class C		1,000.00		999.11		1.92		9.58
Class T		1,000.00		1,003.71		0.98		4.91
Hypothetical(2)
Class I		1,000.00		1,020.25		0.95		4.80
Class A		1,000.00		1,018.87		1.23		6.19
Class C		1,000.00		1,015.42		1.92		9.65
Class T		1,000.00		1,020.10		0.98		4.95
International Equity Fund
Actual
Class I		$1,000.00		$   989.92		0.98%		$4.86
Class A		1,000.00		987.88		1.27		6.31
Class C		1,000.00		985.55		1.91		9.46
Hypothetical(2)
Class I		1,000.00		1,020.12		0.98		4.93
Class A		1,000.00		1,018.65		1.27		6.41
Class C		1,000.00		1,015.48		1.91		9.60

	Beginning Account Value 12/01/15		Ending Account Value 05/31/16		Annual- ized Expense Ratio		Expenses Paid During Period(1)
International Growth Fund(3)
Actual
Class I		$1,000.00		$1,092.00		0.85%		$2.23
Class A		1,000.00		1,091.00		1.12		2.95
Hypothetical(2)
Class I		1,000.00		1,020.75		0.85		4.29
Class A		1,000.00		1,019.38		1.12		5.67
Large Cap Core Fund
Actual
Class I		$1,000.00		$   995.21		0.90%		$4.48
Class A		1,000.00		994.01		1.18		5.86
Class C		1,000.00		990.30		1.82		9.05
Hypothetical(2)
Class I		1,000.00		1,020.51		0.90		4.54
Class A		1,000.00		1,019.12		1.18		5.94
Class C		1,000.00		1,015.91		1.82		9.17

⁽¹⁾  Expenses are equal to each Class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) in the most recent fiscal half-year, then divided by 366.

⁽²⁾  Assumes annual return of 5% before expenses.

⁽³⁾  Actual expense calculations for International Growth Fund are based on data since commencement of operations (February 29, 2016) and Hypothetical Expense calculations assumes the Fund has been in existence for 183 days, and are based on data since December 1, 2015.

79

	Beginning Account Value 12/01/15		Ending Account Value 05/31/16		Annualized Expense Ratio		Expenses Paid During Period(1)
Large Cap Growth Fund
Actual
Class I		$1,000.00		$   966.51		0.90%		$4.42
Class A		1,000.00		965.50		1.19		5.85
Class C		1,000.00		962.39		1.79		8.77
Hypothetical(2)
Class I		1,000.00		1,020.51		0.90		4.54
Class A		1,000.00		1,019.05		1.19		6.01
Class C		1,000.00		1,016.07		1.79		9.01
Large Cap Value Fund
Actual
Class I		$1,000.00		$   985.17		0.90%		$4.46
Class A		1,000.00		983.74		1.19		5.91
Class C		1,000.00		980.85		1.81		8.95
Hypothetical(2)
Class I		1,000.00		1,020.51		0.90		4.54
Class A		1,000.00		1,019.04		1.19		6.02
Class C		1,000.00		1,015.96		1.81		9.11
Mid Cap Fund
Actual
Class I		$1,000.00		$   920.23		1.25%		$6.00
Class A		1,000.00		918.89		1.51		7.24
Class C		1,000.00		916.24		2.23		10.68
Hypothetical(2)
Class I		1,000.00		1,018.75		1.25		6.31
Class A		1,000.00		1,017.45		1.51		7.62
Class C		1,000.00		1,013.85		2.23		11.23
Mid Cap Index Fund
Actual
Class I		$1,000.00		$1,029.36		0.25%		$1.26
Class R4		1,000.00		1,029.53		0.40		2.03
Hypothetical(2)
Class I		1,000.00		1,023.76		0.25		1.26
Class R4		1,000.00		1,023.00		0.40		2.02
Multi-Factor Small Cap Core Fund
Actual
Class I		$1,000.00		$   943.12		0.85%		$4.13
Class A		1,000.00		941.53		1.15		5.56
Hypothetical(2)
Class I		1,000.00		1,020.75		0.85		4.29
Class A		1,000.00		1,019.27		1.15		5.79

	Beginning Account Value 12/01/15		Ending Account Value 05/31/16		Annualized Expense Ratio		Expenses Paid During Period(1)
Multi-Factor Small Cap Growth Fund
Actual
Class I		$1,000.00		$   935.10		0.85%		$4.12
Class A		1,000.00		933.58		1.14		5.51
Class C		1,000.00		930.69		1.77		8.52
Hypothetical(2)
Class I		1,000.00		1,020.75		0.85		4.30
Class A		1,000.00		1,019.31		1.14		5.75
Class C		1,000.00		1,016.17		1.77		8.90
Multi-Factor Small Cap Value Fund
Actual
Class I		$1,000.00		$   980.28		0.85%		$4.21
Class A		1,000.00		978.67		1.14		5.63
Class C		1,000.00		976.11		1.77		8.73
Hypothetical(2)
Class I		1,000.00		1,020.75		0.85		4.29
Class A		1,000.00		1,019.31		1.14		5.74
Class C		1,000.00		1,016.17		1.77		8.91
S&P 500 Index Fund
Actual
Class I		$1,000.00		$1,016.92		0.20%		$1.01
Class A		1,000.00		1,016.53		0.44		2.23
Class C		1,000.00		1,012.37		1.15		5.77
Class R4		1,000.00		1,016.22		0.35		1.76
Class R5		1,000.00		1,016.68		0.25		1.26
Hypothetical(2)
Class I		1,000.00		1,024.00		0.20		1.01
Class A		1,000.00		1,022.79		0.44		2.24
Class C		1,000.00		1,019.27		1.15		5.79
Class R4		1,000.00		1,023.25		0.35		1.77
Class R5		1,000.00		1,023.75		0.25		1.26
Small Cap Fund
Actual
Class I		$1,000.00		$   912.65		0.99%		$4.73
Class A		1,000.00		911.30		1.28		6.12
Class C		1,000.00		908.61		1.94		9.28
Hypothetical(2)
Class I		1,000.00		1,020.05		0.99		5.00
Class A		1,000.00		1,018.60		1.28		6.46
Class C		1,000.00		1,015.28		1.94		9.79
Small Cap Index Fund
Actual
Class I		$1,000.00		$   974.13		0.25%		$1.23
Class R4		1,000.00		973.28		0.40		1.97
Hypothetical(2)
Class I		1,000.00		1,023.75		0.25		1.26
Class R4		1,000.00		1,023.00		0.40		2.02

⁽¹⁾  Expenses are equal to each Class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) in the most recent fiscal half-year, then divided by 366.

⁽²⁾  Assumes annual return of 5% before expenses.

80

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Balanced Allocation Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	13.81		$	13.29		$	12.02		$	10.47		$	10.74		$	13.85		$	13.34		$	12.04		$	10.51		$	10.77
Net Investment Income(1)		0.20			0.18			0.17			0.15			0.17			0.16			0.14			0.14			0.12			0.15
Realized and Unrealized Gain (Loss) on Investments		(0.41	)		0.53			1.27			1.56			(0.26	)		(0.41	)		0.53			1.30			1.54			(0.26	)
Total from Investment Operations		(0.21	)		0.71			1.44			1.71			(0.09	)		(0.25	)		0.67			1.44			1.66			(0.11	)
Payment by Affiliate(1)		–			–			–			–			–	*(2)		–			–			–			–			–	*(2)
Contributions of Capital by Affiliate(1)		–			–			–	*(3)		–			–			–			–			–	*(3)		–			–
Dividends from Net Investment Income		(0.22	)		(0.19	)		(0.17	)		(0.16	)		(0.18	)		(0.18	)		(0.16	)		(0.14	)		(0.13	)		(0.15	)
Distributions from Net Realized Gains		(0.60	)		–			–			–			–			(0.60	)		–			–			–			–
Total Distributions		(0.82	)		(0.19	)		(0.17	)		(0.16	)		(0.18	)		(0.78	)		(0.16	)		(0.14	)		(0.13	)		(0.15	)
Net Asset Value, End of Year	$	12.78		$	13.81		$	13.29		$	12.02		$	10.47		$	12.82		$	13.85		$	13.34		$	12.04		$	10.51
Total Return†		(1.43	)%		5.43	%		12.14	%		16.43	%		(0.75	)%(2)		(1.69	)%		5.08	%		12.04	%		15.93	%		(0.95	)%(2)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	48,965		$	54,649		$	57,001		$	50,513		$	45,922		$	9,559		$	10,330		$	10,822		$	10,513		$	10,439
Ratio of Expenses to Average Net Assets		0.97	%		1.00	%		1.00	%		1.00	%		1.00	%		1.24	%		1.28	%		1.20	%(4)		1.29	%		1.20	%(5)
Ratio of Net Investment Income to Average Net Assets		1.52	%		1.35	%		1.32	%		1.32	%		1.64	%		1.25	%		1.07	%		1.13	%(4)		1.04	%		1.41	%(5)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.33	%		1.15	%		1.15	%		1.19	%		1.12	%		1.60	%		1.43	%		1.43	%		1.48	%		1.42	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and
Reimbursement, as applicable)		1.16	%		1.20	%		1.17	%		1.13	%		1.52	%		0.89	%		0.92	%		0.90	%		0.85	%		1.19	%
Portfolio Turnover Rate		64	%		43	%		55	%		62	%		63	%		64	%		43	%		55	%		62	%		63	%
	Balanced Allocation Fund
	Class C															Class T
	2016			2015			2014			2013			2012			2016(6)
Net Asset Value, Beginning of Year	$	13.64		$	13.16		$	11.91		$	10.41		$	10.67			$13.78
Net Investment Income(1)		0.07			0.05			0.05			0.04			0.06			0.19
Realized and Unrealized Gain (Loss) on Investments		(0.40	)		0.53			1.27			1.53			(0.25	)		(0.30	)
Total from Investment Operations		(0.33	)		0.58			1.32			1.57			(0.19	)		(0.11	)
Payment by Affiliate(1)		–			–			–			–			–	*(2)		–
Contributions of Capital by Affiliate(1)		–			–			–	*(3)		–			–			–
Dividends from Net Investment Income		(0.09	)		(0.10	)		(0.07	)		(0.07	)		(0.07	)		(0.20	)
Distributions from Net Realized Gains		(0.60	)		–			–			–			–			(0.60	)
Total Distributions		(0.69	)		(0.10	)		(0.07	)		(0.07	)		(0.07	)		(0.80	)
Net Asset Value, End of Year	$	12.62		$	13.64		$	13.16		$	11.91		$	10.41			$12.87
Total Return†		(2.31	)%		4.42	%		11.10	%		15.18	%		(1.73	)%(2)		(0.69	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	614		$	688		$	794		$	839		$	798			$       1
Ratio of Expenses to Average Net Assets		1.91	%		1.96	%		1.95	%(4)		2.00	%		2.00	%		0.97	%
Ratio of Net Investment Income to Average Net Assets		0.57	%		0.39	%		0.39	%(4)		0.32	%		0.61	%		1.50	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.27	%		2.11	%		2.12	%		2.19	%		2.13	%		1.38	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and
Reimbursement, as applicable)		0.21	%		0.24	%		0.22	%		0.13	%		0.48	%		1.09	%
Portfolio Turnover Rate		64	%		43	%		55	%		62	%		63	%		64	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset a trade error in the Fund. The payment, net of the trade error, had no impact on the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽⁴⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.08% and 0.02% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default brokerdealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁵⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.09% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

⁽⁶⁾  Class T Shares commenced operations on April 28, 2015. Prior to November 18, 2015, net assets of this share class represented seed capital; therefore, no information is presented for the prior fiscal year.

See Notes to Financial Statements.

81

	International Equity Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	20.61		$	20.45		$	17.12		$	12.99		$	16.30		$	20.45		$	20.31		$	17.00		$	12.90		$	16.15
Net Investment Income(1)		0.24			0.30			0.26			0.22			0.18			0.21			0.24			0.23			0.17			0.14
Realized and Unrealized Gain (Loss) on Investments		(1.90	)		0.13			3.36			4.04			(3.31	)		(1.91	)		0.12			3.32			4.02			(3.26	)
Total from Investment Operations		(1.66	)		0.43			3.62			4.26			(3.13	)		(1.70	)		0.36			3.55			4.19			(3.12	)
Payment by Affiliate(1)		–			–			–			–			–	*(2)		–			–			–			–			–	*(2)
Contributions of Capital by Affiliate(1)		–			–			–	*(3)		–			–	*(4)		–			–			–	*(3)		–			–	*(4)
Dividends from Net Investment Income		(0.37	)		(0.27	)		(0.29	)		(0.13	)		(0.18	)		(0.33	)		(0.22	)		(0.24	)		(0.09	)		(0.13	)
Total Distributions		(0.37	)		(0.27	)		(0.29	)		(0.13	)		(0.18	)		(0.33	)		(0.22	)		(0.24	)		(0.09	)		(0.13	)
Net Asset Value, End of Year	$	18.58		$	20.61		$	20.45		$	17.12		$	12.99		$	18.42		$	20.45		$	20.31		$	17.00		$	12.90
Total Return†		(8.02	)%		2.25	%		21.26	%		32.92	%		(19.18	)%(2)(4)		(8.31	)%		1.85	%		20.96	%		32.52	%		(19.30	)%(2)(4)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	769,692		$	631,411		$	591,650		$	378,076		$	301,919		$	33,483		$	18,963		$	13,920		$	8,867		$	7,757
Ratio of Expenses to Average Net Assets		0.98	%		0.98	%		1.04	%		1.21	%		1.23	%		1.27	%		1.27	%		1.23	%(5)		1.51	%		1.42	%(6)
Ratio of Net Investment Income to Average Net Assets		1.31	%		1.49	%		1.33	%		1.45	%		1.26	%		1.15	%		1.23	%		1.22	%(5)		1.12	%		0.97	%(6)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.06	%		1.09	%		1.18	%		1.21	%		1.23	%		1.35	%		1.38	%		1.47	%		1.51	%		1.53	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.23	%		1.38	%		1.19	%		1.45	%		1.26	%		1.07	%		1.12	%		0.98	%		1.12	%		0.86	%
Portfolio Turnover Rate		19	%		29	%		31	%		34	%		31	%		19	%		29	%		31	%		34	%		31	%
	International Equity Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	19.64		$	19.54		$	16.40		$	12.46		$	15.59
Net Investment Income (Loss)(1)		0.06			0.13			0.23			0.05			0.03
Realized and Unrealized Gain (Loss) on Investments		(1.80	)		0.10			3.06			3.89			(3.15	)
Total from Investment Operations		(1.74	)		0.23			3.29			3.94			(3.12	)
Payment by Affiliate(1)		–			–			–			–			–	*(2)
Contributions of Capital by Affiliate(1)		–			–			–	*(3)		–			–	*(4)
Dividends from Net Investment Income		(0.24	)		(0.13	)		(0.15	)		–			(0.01	)
Total Distributions		(0.24	)		(0.13	)		(0.15	)		–			(0.01	)
Net Asset Value, End of Year	$	17.66		$	19.64		$	19.54		$	16.40		$	12.46
Total Return†		(8.87	)%		1.32	%		20.17	%		31.62	%		(19.98	)%(2)(4)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	3,126		$	2,566		$	1,662		$	350		$	313
Ratio of Expenses to Average Net Assets		1.90	%		1.88	%		1.89	%(5)		2.21	%		2.23	%
Ratio of Net Investment Income to Average Net Assets		0.35	%		0.66	%		1.21	%(5)		0.38	%		0.19	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.98	%		1.99	%		2.10	%		2.21	%		2.23	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.27	%		0.55	%		1.00	%		0.38	%		0.19	%
Portfolio Turnover Rate		19	%		29	%		31	%		34	%		31	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset a trade error in the Fund. The payment, net of the trade error, had no impact on the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset losses relating to a change in valuation methodology of an asset in the securities lending collateral account of the Acquired Funds prior to the Reorganization. The payment had no impact on the total return of the Fund.

⁽⁵⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.09% and 0.05% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default brokerdealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁶⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.11% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

82

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	International Growth Fund(1)
	Class I			Class A
	2016			2016
Net Asset Value, Beginning of Year		$10.00			$10.00
Net Investment Income(2)		0.06			0.06
Realized and Unrealized Gain (Loss) on Investments		0.86			0.85
Total from Investment Operations		0.92			0.91
Net Asset Value, End of Year		$10.92			$10.91
Total Return†		9.20	%		9.10	%
Ratios/Supplemental Data
Net Assets End of Year (000)		$3,273			$     22
Ratio of Expenses to Average Net Assets		0.85	%		1.12	%
Ratio of Net Investment Income to Average Net Assets		2.41	%		2.14	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		6.48	%		6.75	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(3.22	)%		(3.49	)%
Portfolio Turnover Rate		8	%		8	%

† Total return excludes sales charge.

⁽¹⁾  International Growth Fund commenced operations on February 29, 2016. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽²⁾  Per share data calculated using average shares outstanding method.

See Notes to Financial Statements.

83

	Large Cap Core Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	17.52		$	15.11		$	12.82		$	10.79		$	10.96		$	17.15		$	14.81		$	12.56		$	10.57		$	10.73
Net Investment Income (Loss)(1)		0.21			0.14			0.12			0.15			0.12			0.16			0.09			0.10			0.11			0.10
Realized and Unrealized Gain (Loss) on Investments		(0.34	)		2.41			2.30			2.02			(0.17	)		(0.32	)		2.36			2.24			1.99			(0.17	)
Total from Investment Operations		(0.13	)		2.55			2.42			2.17			(0.05	)		(0.16	)		2.45			2.34			2.10			(0.07	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.19	)		(0.14	)		(0.13	)		(0.14	)		(0.12	)		(0.16	)		(0.11	)		(0.09	)		(0.11	)		(0.09	)
Total Distributions		(0.19	)		(0.14	)		(0.13	)		(0.14	)		(0.12	)		(0.16	)		(0.11	)		(0.09	)		(0.11	)		(0.09	)
Net Asset Value, End of Year	$	17.20		$	17.52		$	15.11		$	12.82		$	10.79		$	16.83		$	17.15		$	14.81		$	12.56		$	10.57
Total Return†		(0.74	)%		16.96	%		19.00	%		20.21	%		(0.46	)%		(0.95	)%		16.61	%		18.74	%		19.92	%		(0.67	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	24,315		$	23,527		$	21,865		$	26,530		$	17,840		$	3,674		$	2,860		$	2,784		$	2,705		$	2,596
Ratio of Expenses to Average Net Assets		0.91	%		0.94	%		0.94	%		0.94	%		0.94	%		1.18	%		1.21	%		1.11	%(3)		1.22	%		1.13	%(4)
Ratio of Net Investment Income to Average Net Assets		1.26	%		0.84	%		0.89	%		1.25	%		1.13	%		0.94	%		0.57	%		0.71	%(3)		0.95	%		0.92	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.29	%		1.25	%		1.16	%		1.18	%		1.26	%		1.56	%		1.52	%		1.43	%		1.46	%		1.55	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.88	%		0.53	%		0.67	%		1.01	%		0.81	%		0.56	%		0.26	%		0.39	%		0.71	%		0.50	%
Portfolio Turnover Rate		57	%		61	%		69	%		80	%		60	%		57	%		61	%		69	%		80	%		60	%
	Large Cap Core Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	15.89		$	13.76		$	11.68		$	9.84		$	10.01
Net Investment Income (Loss)(1)		0.05			(0.02	)		–			0.02			0.01
Realized and Unrealized Gain (Loss) on Investments		(0.32	)		2.20			2.09			1.85			(0.16	)
Total from Investment Operations		(0.27	)		2.18			2.09			1.87			(0.15	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.09	)		(0.05	)		(0.01	)		(0.03	)		(0.02	)
Total Distributions		(0.09	)		(0.05	)		(0.01	)		(0.03	)		(0.02	)
Net Asset Value, End of Year	$	15.53		$	15.89		$	13.76		$	11.68		$	9.84
Total Return†		(1.68	)%		15.83	%		17.92	%		19.00	%		(1.49	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	261		$	260		$	155		$	124		$	128
Ratio of Expenses to Average Net Assets		1.84	%		1.92	%		1.85	%(3)		1.94	%		1.94	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.33	%		(0.14	)%		(0.02	)%(3)		0.22	%		0.12	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.22	%		2.22	%		2.13	%		2.18	%		2.27	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.05	)%		(0.44	)%		(0.30	)%		(0.02	)%		(0.21	)%
Portfolio Turnover Rate		57	%		61	%		69	%		80	%		60	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.10% and 0.05% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default brokerdealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.09% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

84

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Large Cap Growth Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	29.47		$	25.03		$	20.42		$	17.31		$	17.24		$	28.92		$	24.58		$	20.02		$	16.96		$	16.88
Net Investment Income (Loss)(1)		0.23			0.13			0.12			0.14			0.11			0.16			0.05			0.09			0.09			0.07
Realized and Unrealized Gain (Loss) on Investments		(1.08	)		4.42			4.63			3.12			0.05			(1.07	)		4.33			4.54			3.07			0.05
Total from Investment Operations		(0.85	)		4.55			4.75			3.26			0.16			(0.91	)		4.38			4.63			3.16			0.12
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.19	)		(0.11	)		(0.14	)		(0.15	)		(0.09	)		(0.12	)		(0.04	)		(0.07	)		(0.10	)		(0.04	)
Total Distributions		(0.19	)		(0.11	)		(0.14	)		(0.15	)		(0.09	)		(0.12	)		(0.04	)		(0.07	)		(0.10	)		(0.04	)
Net Asset Value, End of Year	$	28.43		$	29.47		$	25.03		$	20.42		$	17.31		$	27.89		$	28.92		$	24.58		$	20.02		$	16.96
Total Return†		(2.89	)%		18.20	%		23.31	%		18.96	%		0.98	%		(3.15	)%		17.84	%		23.16	%		18.68	%		0.71	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	69,130		$	82,360		$	53,738		$	56,042		$	56,731		$	27,037		$	15,403		$	12,973		$	12,045		$	12,159
Ratio of Expenses to Average Net Assets		0.93	%		0.98	%		0.98	%		0.98	%		0.98	%		1.21	%		1.26	%		1.08	%(3)		1.28	%		1.17	%(4)
Ratio of Net Investment Income to Average Net Assets		0.81	%		0.46	%		0.53	%		0.77	%		0.63	%		0.59	%		0.17	%		0.43	%(3)		0.47	%		0.43	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.09	%		1.04	%		1.11	%		1.12	%		1.09	%		1.39	%		1.33	%		1.39	%		1.42	%		1.39	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.65	%		0.40	%		0.40	%		0.63	%		0.52	%		0.41	%		0.10	%		0.12	%		0.33	%		0.21	%
Portfolio Turnover Rate		81	%		63	%		70	%		75	%		61	%		81	%		63	%		70	%		75	%		61	%
	Large Cap Growth Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	26.31		$	22.44		$	18.31		$	15.54		$	15.55
Net Investment Income (Loss)(1)		(0.01	)		(0.10	)		(0.01	)		(0.04	)		(0.06	)
Realized and Unrealized Gain (Loss) on Investments		(0.97	)		3.97			4.14			2.81			0.05
Total from Investment Operations		(0.98	)		3.87			4.13			2.77			(0.01	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Total Distributions		–			–			–			–			–
Net Asset Value, End of Year	$	25.33		$	26.31		$	22.44		$	18.31		$	15.54
Total Return†		(3.69	)%		17.20	%		22.56	%		17.83	%		(0.06	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	950		$	1,311		$	283		$	259		$	216
Ratio of Expenses to Average Net Assets		1.76	%		1.85	%		1.55	%(3)		1.98	%		1.98	%
Ratio of Net Investment Loss to Average Net Assets		(0.04	)%		(0.40	)%		(0.04	)%(3)		(0.23	)%		(0.38	)%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.92	%		1.88	%		1.89	%		2.12	%		2.08	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.20	)%		(0.43	)%		(0.38	)%		(0.37	)%		(0.48	)%
Portfolio Turnover Rate		81	%		63	%		70	%		75	%		61	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.18% and 0.22% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.11% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

85

	Large Cap Value Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	21.96		$	20.29		$	16.93		$	13.60		$	14.22		$	21.92		$	20.26		$	16.88		$	13.56		$	14.16
Net Investment Income(1)		0.36			0.21			0.19			0.21			0.21			0.30			0.15			0.16			0.17			0.18
Realized and Unrealized Gain (Loss) on Investments		(0.54	)		1.68			3.37			3.34			(0.62	)		(0.54	)		1.67			3.36			3.32			(0.62	)
Total from Investment Operations		(0.18	)		1.89			3.56			3.55			(0.41	)		(0.24	)		1.82			3.52			3.49			(0.44	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.34	)		(0.22	)		(0.20	)		(0.22	)		(0.21	)		(0.30	)		(0.16	)		(0.14	)		(0.17	)		(0.16	)
Total Distributions		(0.34	)		(0.22	)		(0.20	)		(0.22	)		(0.21	)		(0.30	)		(0.16	)		(0.14	)		(0.17	)		(0.16	)
Net Asset Value, End of Year	$	21.44		$	21.96		$	20.29		$	16.93		$	13.60		$	21.38		$	21.92		$	20.26		$	16.88		$	13.56
Total Return†		(0.80	)%		9.36	%		21.15	%		26.31	%		(2.86	)%		(1.10	)%		9.02	%		20.97	%		25.94	%		(3.03	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	77,554		$	90,375		$	100,626		$	91,849		$	102,960		$	35,716		$	24,613		$	24,746		$	23,691		$	22,020
Ratio of Expenses to Average Net Assets		0.93	%		0.98	%		0.99	%		1.03	%		0.99	%		1.21	%		1.27	%		1.14	%(3)		1.33	%		1.18	%(4)
Ratio of Net Investment Income to Average Net Assets		1.71	%		1.00	%		1.03	%		1.40	%		1.53	%		1.40	%		0.73	%		0.88	%(3)		1.10	%		1.35	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.03	%		1.00	%		1.02	%		1.03	%		0.99	%		1.31	%		1.30	%		1.30	%		1.33	%		1.29	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.61	%		0.98	%		1.00	%		1.40	%		1.53	%		1.30	%		0.70	%		0.72	%		1.10	%		1.24	%
Portfolio Turnover Rate		77	%		64	%		57	%		100	%		23	%		77	%		64	%		57	%		100	%		23	%
	Large Cap Value Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	21.56		$	19.93		$	16.61		$	13.34		$	13.95
Net Investment Income(1)		0.18			0.03			0.06			0.06			0.07
Realized and Unrealized Gain (Loss) on Investments		(0.53	)		1.66			3.29			3.28			(0.61	)
Total from Investment Operations		(0.35	)		1.69			3.35			3.34			(0.54	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.21	)		(0.06	)		(0.03	)		(0.07	)		(0.07	)
Total Distributions		(0.21	)		(0.06	)		(0.03	)		(0.07	)		(0.07	)
Net Asset Value, End of Year	$	21.00		$	21.56		$	19.93			16.61			13.34
Total Return†		(1.64	)%		8.52	%		20.21	%		25.13	%		(3.85	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	186		$	212		$	173		$	149		$	126
Ratio of Expenses to Average Net Assets		1.78	%		1.84	%		1.71	%(3)		2.03	%		1.99	%
Ratio of Net Investment Income to Average Net Assets		0.85	%		0.15	%		0.30	%(3)		0.40	%		0.54	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.88	%		1.87	%		1.86	%		2.03	%		1.99	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.75	%		0.12	%		0.15	%		0.40	%		0.54	%
Portfolio Turnover Rate		77	%		64	%		57	%		100	%		23	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.14% and 0.12% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.11% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

86

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Mid Cap Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	19.28		$	17.55		$	15.27		$	12.10		$	13.35		$	19.11		$	17.44		$	15.19		$	12.03		$	13.19
Net Investment Income (Loss)(1)		(0.06	)		–	*		–			0.08			0.08			(0.11	)		(0.05	)		(0.02	)		0.06			0.07
Realized and Unrealized Gain (Loss) on Investments		(1.80	)		1.73			2.26			3.32			(1.23	)		(1.78	)		1.72			2.25			3.29			(1.21	)
Total from Investment Operations		(1.86	)		1.73			2.26			3.40			(1.15	)		(1.89	)		1.67			2.23			3.35			(1.14	)
Contributions of Capital by Affiliate(1)		–			–			0.02	(2)		–			–			–			–			0.02	(2)		–			–
Dividends from Net Investment Income		–			–			–			(0.23	)		(0.10	)		–			–			–			(0.19	)		(0.02	)
Total Distributions		–			–			–			(0.23	)		(0.10	)		–			–			–			(0.19	)		(0.02	)
Net Asset Value, End of Year	$	17.42		$	19.28		$	17.55		$	15.27		$	12.10		$	17.22		$	19.11		$	17.44		$	15.19		$	12.03
Total Return†		(9.65	)%		9.86	%		14.93	%		28.51	%		(8.61	)%		(9.89	)%		9.58	%		14.81	%		28.14	%		(8.63	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	1,718		$	2,050		$	2,067		$	3,952		$	29,129		$	6,815		$	8,806		$	9,503		$	10,290		$	11,561
Ratio of Expenses to Average Net Assets		1.25	%		1.25	%		1.25	%		1.22	%		1.06	%		1.52	%		1.53	%		1.37	%(3)		1.54	%		1.14	%(4)
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.36	)%		(0.02	)%		(0.01	)%		0.61	%		0.67	%		(0.63	)%		(0.30	)%		(0.12	)%(3)		0.49	%		0.58	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.24	%		1.85	%		1.74	%		1.31	%		1.06	%		2.51	%		2.13	%		2.02	%		1.79	%		1.36	%
Ratio of Net Investment Income (Loss) to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(1.35	)%		(0.62	)%		(0.51	)%		0.52	%		0.67	%		(1.62	)%		(0.90	)%		(0.77	)%		0.24	%		0.36	%
Portfolio Turnover Rate		13	%		16	%		25	%		86	%		23	%		13	%		16	%		25	%		86	%		23	%
	Mid Cap Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	18.21		$	16.73		$	14.69		$	11.61		$	12.83
Net Investment Income (Loss)(1)		(0.22	)		(0.16	)		(0.15	)		(0.03	)		(0.04	)
Realized and Unrealized Gain (Loss) on Investments		(1.69	)		1.64			2.17			3.18			(1.18	)
Total from Investment Operations		(1.91	)		1.48			2.02			3.15			(1.22	)
Contributions of Capital by Affiliate(1)		–			–			0.02	(2)		–			–
Dividends from Net Investment Income		–			–			–			(0.07	)		–
Total Distributions		–			–			–			(0.07	)		–
Net Asset Value, End of Year	$	16.30		$	18.21		$	16.73		$	14.69		$	11.61
Total Return†		(10.49	)%		8.85	%		13.89	%		27.27	%		(9.51	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	663		$	920		$	1,010		$	1,011		$	1,509
Ratio of Expenses to Average Net Assets		2.22	%		2.16	%		2.17	%(3)		2.25	%		2.06	%
Ratio of Net Investment Loss to Average Net Assets		(1.34	)%		(0.92	)%		(0.91	)%(3)		(0.20	)%		(0.34	)%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		3.21	%		2.83	%		2.72	%		2.49	%		2.06	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(2.33	)%		(1.59	)%		(1.46	)%		(0.44	)%		(0.34	)%
Portfolio Turnover Rate		13	%		16	%		25	%		86	%		23	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, 0.13%, 0.13% and 0.14% of Class I, Class A, and Class C total returns, respectively, were attributable to a voluntary payment made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. Excluding this item, the total returns would have been 14.80%, 14.68%, and 13.75% for Class I, Class A, and Class C, respectively.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.15% and 0.05% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.22% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

87

	Mid Cap Index Fund
	Class I									Class R4
	2016			2015			2014(1)			2016			2015(2)
Net Asset Value, Beginning of Year	$	11.14		$	10.39		$	10.00		$	11.14		$	10.39
Net Investment Income (Loss)(3)		0.14			0.13			0.05			0.12			0.15
Realized and Unrealized Gain (Loss) on Investments		(0.26	)		0.99			0.34			(0.24	)		0.96
Total from Investment Operations		(0.12	)		1.12			0.39			(0.12	)		1.11
Dividends from Net Investment Income		(0.13	)		(0.14	)		–			(0.12	)		(0.14	)
Distributions from Net Realized Gains		(0.18	)		(0.23	)		–			(0.18	)		(0.22	)
Total Distributions		(0.31	)		(0.37	)		–			(0.30	)		(0.36	)
Net Asset Value, End of Year	$	10.71		$	11.14		$	10.39		$	10.72		$	11.14
Total Return		(0.85	)%		11.00	%		3.90	%		(0.84	)%		11.00	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	3,149		$	4,747		$	3,118		$	2,167		$	145
Ratio of Expenses to Average Net Assets		0.25	%		0.25	%		0.25	%		0.40	%		0.26	%
Ratio of Net Investment Income to Average Net Assets		1.39	%		1.18	%		1.23	%		1.21	%		1.32	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.71	%		2.67	%		2.98	%		3.03	%		3.18	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(1.07	)%		(1.24	)%		(1.50	)%		(1.42	)%		(1.60	)%
Portfolio Turnover Rate		88	%		119	%		16	%		88	%		119	%

⁽¹⁾  Class I Shares commenced operations on December 30, 2013. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽²⁾  Class R4 Shares commenced operations on December 30, 2013. Prior to April 25, 2015, net assets of this share class represented seed capital; therefore, no 2014 information is presented. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽³⁾  Per share data calculated using average shares outstanding method.

See Notes to Financial Statements.

88

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Multi-Factor Small Cap Core Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	21.20		$	18.38		$	15.39		$	10.90		$	11.62		$	21.06		$	18.29		$	15.33		$	10.87		$	11.59
Net Investment Income (Loss)(1)		0.11		$	0.06		$	(0.01	)		0.19			0.05			0.05			–	*		(0.06	)		0.22			0.02
Realized and Unrealized Gain (Loss) on Investments		(0.79	)		2.80			3.08			4.41			(0.75	)		(0.78	)		2.79			3.06			4.34			(0.74	)
Total from Investment Operations		(0.68	)		2.86			3.07			4.60			(0.70	)		(0.73	)		2.79			3.00			4.56			(0.72	)
Dividends from Net Investment Income		(0.04	)		(0.04	)		(0.08	)		(0.11	)		(0.02	)		–			(0.02	)		(0.04	)		(0.10	)		–
Distributions from Net Realized Gains		(0.02	)		–			–			–			–			(0.02	)		–			–			–			–
Total Distributions		(0.06	)		(0.04	)		(0.08	)		(0.11	)		(0.02	)		(0.02	)		(0.02	)		(0.04	)		(0.10	)		–
Net Asset Value, End of Year	$	20.46			21.20			18.38		$	15.39		$	10.90		$	20.31		$	21.06		$	18.29		$	15.33		$	10.87
Total Return†		(3.20	)%		15.59	%		19.93	%		42.43	%		(6.00	)%		(3.48	)%		15.25	%		19.57	%		42.11	%		(6.21	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	112,055		$	60,168		$	32,973		$	20,430		$	15,298		$	71,831		$	56,528		$	6,098		$	2,662		$	285
Ratio of Expenses to Average Net Assets		0.85	%		0.93	%		0.95	%		0.95	%		0.95	%		1.12	%		1.20	%		1.23	%(2)		1.23	%		1.16	%(3)
Ratio of Net Investment Income (Loss) to
Average Net Assets		0.56	%		0.32	%		(0.05	)%		1.49	%		0.42	%		0.27	%		0.00	%		(0.33	)%(2)		1.65	%		0.21	%(3)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.19	%		1.22	%		1.36	%		1.47	%		1.42	%		1.46	%		1.48	%		1.65	%		1.83	%		1.70	%
Ratio of Net Investment Income (Loss) to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.22	%		0.03	%		(0.46	)%		0.97	%		(0.05	)%		(0.07	)%		(0.28	)%		(0.75	)%		1.05	%		(0.33	)%
Portfolio Turnover Rate		77	%		92	%		102	%		76	%		77	%		77	%		92	%		102	%		76	%		77	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾ Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment had no impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders.

⁽³⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.07% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

89

	Multi-Factor Small Cap Growth Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	20.91		$	18.41		$	15.67		$	11.79		$	12.73		$	20.58		$	18.17		$	15.46		$	11.63		$	12.59
Net Investment Income (Loss)(1)		0.01			(0.04	)		(0.02	)		0.08			0.03			(0.05	)		(0.09	)		(0.06	)		0.04			–	*
Realized and Unrealized Gain (Loss) on Investments		(0.75	)		3.25			2.81			3.88			(0.97	)		(0.74	)		3.21			2.77			3.83			(0.96	)
Total from Investment Operations		(0.74	)		3.21			2.79			3.96			(0.94	)		(0.79	)		3.12			2.71			3.87			(0.96	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.03	)		–			(0.05	)		(0.08	)		–			–			–	*		–			(0.04	)		–
Distributions from Net Realized Gains		(0.50	)		(0.71	)		–			–			–			(0.50	)		(0.71	)		–			–			–
Total Distributions		(0.53	)		(0.71	)		(0.05	)		(0.08	)		–			(0.50	)		(0.71	)		–			(0.04	)		–
Net Asset Value, End of Year	$	19.64		$	20.91		$	18.41		$	15.67		$	11.79		$	19.29		$	20.58		$	18.17		$	15.46		$	11.63
Total Return†		(3.63	)%		17.83	%		17.79	%		33.76	%		(7.38	)%		(3.87	)%		17.51	%		17.54	%		33.39	%		(7.63	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	49,112		$	17,115		$	11,841		$	8,891		$	9,674		$	37,139		$	23,806		$	20,193		$	19,605		$	16,875
Ratio of Expenses to Average Net Assets		0.85	%		0.93	%		0.95	%		0.95	%		0.95	%		1.12	%		1.20	%		1.12	%(3)		1.23	%		1.17	%(4)
Ratio of Net Investment Income (Loss) to Average Net Assets		0.06	%		(0.20	)%		(0.14	)%		0.58	%		0.26	%		(0.24	)%		(0.47	)%		(0.32	)%(3)		0.31	%		0.03	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.45	%		1.56	%		1.76	%		1.89	%		1.81	%		1.72	%		1.85	%		2.02	%		2.17	%		2.09	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.54	)%		(0.83	)%		(0.95	)%		(0.36	)%		(0.60	)%		(0.84	)%		(1.12	)%		(1.22	)%		(0.63	)%		(0.89	)%
Portfolio Turnover Rate		66	%		82	%		85	%		60	%		108	%		66	%		82	%		85	%		60	%		108	%
	Multi-Factor Small Cap Growth Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	20.22		$	17.98		$	15.41		$	11.64		$	12.69
Net Investment Income (Loss)(1)		(0.16	)		(0.22	)		(0.18	)		(0.05	)		(0.09	)
Realized and Unrealized Gain (Loss) on Investments		(0.74	)		3.17			2.75			3.82			(0.96	)
Total from Investment Operations		(0.90	)		2.95			2.57			3.77			(1.05	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		–			–			–			–			–
Distributions from Net Realized Gains		(0.50	)		(0.71	)		–			–			–
Total Distributions		(0.50	)		(0.71	)		–			–			–
Net Asset Value, End of Year	$	18.82		$	20.22		$	17.98		$	15.41		$	11.64
Total Return†		(4.49	)%		16.74	%		16.68	%		32.39	%		(8.27	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	7,595		$	1,318		$	258		$	159		$	122
Ratio of Expenses to Average Net Assets		1.77	%		1.87	%		1.86	%(3)		1.95	%		1.95	%
Ratio of Net Investment Loss to Average Net Assets		(0.84	)%		(1.16	)%		(1.05	)%(3)		(0.41	)%		(0.74	)%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.37	%		2.42	%		2.70	%		2.89	%		2.81	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(1.44	)%		(1.71	)%		(1.89	)%		(1.35	)%		(1.60	)%
Portfolio Turnover Rate		66	%		82	%		85	%		60	%		108	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.09% and 0.03% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.06% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

90

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y 3 1 ,     u n l e s s  o t h e r w i s e  i n d i c a t e d

	Multi-Factor Small Cap Value Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	21.47		$	19.08		$	16.09		$	12.38		$	13.89		$	19.81		$	17.62		$	14.84		$	11.45		$	12.83
Net Investment Income (Loss)(1)		0.49			0.42			0.22			0.49			0.16			0.40			0.34			0.18			0.44			0.13
Realized and Unrealized Gain (Loss) on Investments		(1.68	)		2.16			3.04			3.57			(1.54	)		(1.56	)		1.99			2.82			3.26			(1.42	)
Total from Investment Operations		(1.19	)		2.58			3.26			4.06			(1.38	)		(1.16	)		2.33			3.00			3.70			(1.29	)
Contributions of Capital by Affiliate(1)		–			–			0.01	(2)		–			–			–			–			0.01	(2)		–			–
Dividends from Net Investment Income		(0.39	)		(0.19	)		(0.28	)		(0.35	)		(0.13	)		(0.33	)		(0.14	)		(0.23	)		(0.31	)		(0.09	)
Total Distributions		(0.39	)		(0.19	)		(0.28	)		(0.35	)		(0.13	)		(0.33	)		(0.14	)		(0.23	)		(0.31	)		(0.09	)
Net Asset Value, End of Year	$	19.89		$	21.47		$	19.08		$	16.09		$	12.38		$	18.32		$	19.81		$	17.62		$	14.84		$	11.45
Total Return†		(5.49	)%		13.57	%		20.36	%		33.33	%		(9.96	)%		(5.79	)%		13.26	%		20.34	%		32.82	%		(10.08	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	13,442		$	16,038		$	9,639		$	8,321		$	9,623		$	11,351		$	13,454		$	13,673		$	13,459		$	12,704
Ratio of Expenses to Average Net Assets		0.85	%		1.02	%		1.25	%		1.25	%		1.25	%		1.12	%		1.30	%		1.32	%(3)		1.54	%		1.43	%(4)
Ratio of Net Investment Income to Average Net Assets		2.49	%		2.04	%		1.18	%		3.54	%		1.24	%		2.21	%		1.80	%		1.09	%(3)		3.42	%		1.08	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.63	%		1.55	%		1.68	%		1.77	%		1.62	%		1.90	%		1.84	%		1.95	%		2.06	%		1.92	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.71	%		1.51	%		0.75	%		3.02	%		0.87	%		1.43	%		1.26	%		0.46	%		2.90	%		0.59	%
Portfolio Turnover Rate		105	%		94	%		109	%		108	%		91	%		105	%		94	%		109	%		108	%		91	%
	Multi-Factor Small Cap Value Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	17.72		$	15.76		$	13.31		$	10.29		$	11.55
Net Investment Income (Loss)(1)		0.25			0.19			0.06			0.32			0.03
Realized and Unrealized Gain (Loss) on Investments		(1.38	)		1.80			2.52			2.92			(1.29	)
Total from Investment Operations		(1.13	)		1.99			2.58			3.24			(1.26	)
Contributions of Capital by Affiliate(1)		–			–			0.01	(2)		–			–
Dividends from Net Investment Income		(0.24	)		(0.03	)		(0.14	)		(0.22	)		–	*
Total Distributions		(0.24	)		(0.03	)		(0.14	)		(0.22	)		–	*
Net Asset Value, End of Year	$	16.35		$	17.72		$	15.76		$	13.31		$	10.29
Total Return†		(6.30	)%		12.67	%		19.51	%		31.91	%		(10.88	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	1,550		$	1,511		$	1,495		$	1,152		$	1,004
Ratio of Expenses to Average Net Assets		1.75	%		1.94	%		1.99	%(3)		2.25	%		2.25	%
Ratio of Net Investment Income (Loss) to Average Net Assets		1.57	%		1.11	%		0.42	%(3)		2.79	%		0.27	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.53	%		2.47	%		2.57	%		2.77	%		2.63	%
Ratio of Net Investment Income (Loss) to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.79	%		0.58	%		(0.16	)%		2.27	%		(0.11	)%
Portfolio Turnover Rate		105	%		94	%		109	%		108	%		91	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, 0.06%, 0.07% and 0.08% of Class I, Class A, and Class C total returns, respectively, were attributable to a voluntary payment made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. Excluding this item, the total returns would have been 20.30%, 20.27%, and 19.43% for Class I, Class A, and Class C, respectively.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.20% and 0.15% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.11% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

91

	S&P 500 Index Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	16.68		$	15.37		$	13.01		$	10.46		$	10.71		$	16.61		$	15.31		$	12.95		$	10.41		$	10.67
Net Investment Income(1)		0.32			0.29			0.25			0.22			0.19			0.28			0.25			0.22			0.19			0.16
Realized and Unrealized Gain (Loss) on Investments		(0.17	)		1.46			2.36			2.55			(0.26	)		(0.16	)		1.45			2.35			2.54			(0.26	)
Total from Investment Operations		0.15			1.75			2.61			2.77			(0.07	)		0.12			1.70			2.57			2.73			(0.10	)
Contributions of Capital by Affiliate(1)		–			–	*(2)		–			–	*(3)		–			–			–			–	*(2)		–			–	*(3)
Dividends from Net Investment Income		(0.31	)		(0.29	)		(0.25	)		(0.22	)		(0.18	)		(0.27	)		(0.25	)		(0.21	)		(0.19	)		(0.16	)
Distributions from Net Realized Gains		(0.22	)		(0.15	)		–			–			–			(0.22	)		(0.15	)		–			–			–
Total Distributions		(0.53	)		(0.44	)		(0.25	)		(0.22	)		(0.18	)		(0.49	)		(0.40	)		(0.21	)		(0.19	)		(0.16	)
Net Asset Value, End of Year	$	16.30		$	16.68		$	15.37		$	13.01		$	10.46		$	16.24		$	16.61		$	15.31		$	12.95		$	10.41
Total Return†		1.08	%		11.52	%		20.23	%		26.78	%		(0.55	)%(3)		0.91	%		11.24	%		20.01	%26.50%					(0.91	)%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	138,427		$	171,990		$	137,732		$	97,902		$	88,355		$	20,003		$	20,721		$	19,093		$	23,632		$	20,712
Ratio of Expenses to Average Net Assets		0.20	%		0.20	%		0.27	%		0.36	%		0.35	%		0.44	%		0.45	%		0.49	%(4)		0.62	%		0.61	%
Ratio of Net Investment Income to Average Net Assets		2.01	%		1.82	%		1.80	%		1.90	%		1.82	%		1.77	%		1.57	%		1.57	%(4)		1.65	%		1.56	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.32	%		0.32	%		0.34	%		0.36	%		0.35	%		0.56	%		0.56	%		0.58	%		0.62	%		0.61	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.89	%		1.70	%		1.73	%		1.90	%		1.82	%		1.65	%		1.46	%		1.47	%		1.65	%		1.56	%
Portfolio Turnover Rate		7	%		8	%		18	%		12	%		9	%		7	%		8	%		18	%		12	%		9	%

	S&P 500 Index Fund
	Class C															Class R4						Class R5
	2016			2015			2014			2013			2012			2016			2015(5)			2016			2015			2014(5)
Net Asset Value, Beginning of Year	$	16.47		$	15.17		$	12.86		$	10.34		$	10.60		$	16.68		$	15.36		$	16.68		$	15.37		$	14.65
Net Investment Income(1)		0.17			0.14			0.11			0.11			0.08			0.30			0.28			0.32			0.11			0.13
Realized and Unrealized Gain (Loss) on Investments		(0.17	)		1.44			2.32			2.53			(0.26	)		(0.17	)		1.47			(0.17	)		1.64			0.66
Total from Investment Operations		–			1.58			2.43			2.64			(0.18	)		0.13			1.75			0.15			1.75			0.79
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–	*(3)		–			–			–			–			–
Dividends from Net Investment Income		(0.19	)		(0.13	)		(0.12	)		(0.12	)		(0.08	)		(0.29	)		(0.28	)		(0.31	)		(0.29	)		(0.07	)
Distributions from Net Realized Gains		(0.22	)		(0.15	)		–			–			–			(0.22	)		(0.15	)		(0.22	)		(0.15	)		–
Total Distributions		(0.41	)		(0.28	)		(0.12	)		(0.12	)		(0.08	)		(0.51	)		(0.43	)		(0.53	)		(0.44	)		(0.07	)
Net Asset Value, End of Year	$	16.06		$	16.47		$	15.17		$	12.86		$	10.34		$	16.30		$	16.68		$	16.30		$	16.68		$	15.37
Total Return†		0.14	%		10.46	%		19.01	%		25.66	%		(1.66	)%(3)		0.94	%		11.52	%		1.04	%		11.51	%		5.38	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	7,023		$	8,416		$	11,089		$	6,496		$	1,705		$	4,944		$	3,889		$	560		$	187		$	6
Ratio of Expenses to Average Net Assets		1.14	%		1.16	%		1.26	%(4)		1.36	%		1.35	%		0.35	%		0.36	%		0.25	%		0.25	%		0.19	%
Ratio of Net Investment Income to Average Net Assets		1.07	%		0.86	%		0.81	%(4)		0.90	%		0.82	%		1.88	%		1.69	%		2.00	%		1.79	%		2.05	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.26	%		1.27	%		1.33	%		1.36	%		1.35	%		0.47	%		0.47	%		0.37	%		0.35	%		0.38	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.95	%		0.75	%		0.73	%		0.90	%		0.82	%		1.76	%		1.58	%		1.88	%		1.69	%		1.87	%
Portfolio Turnover Rate		7	%		8	%		18	%		12	%		9	%		7	%		8	%		7	%		8	%		18	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset a trade error in the Fund. The payment, net of the trade error, had no impact on the total return of the Fund.

⁽⁴⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.03% and 0.01% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁵⁾  Class R4 and Class R5 commenced operations on December 30, 2013. Prior to September 3, 2014, net assets of the Class R4 Shares represented initial seed capital; therefore, no 2014 information is presented. All ratios for the period have been annualized. Total return for the period has not been annualized.

See Notes to Financial Statements.

92

P N C  E q u i t y  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Small Cap Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	22.53		$	20.21		$	17.91		$	12.99		$	12.85		$	21.90		$	19.69		$	17.51		$	12.74		$	12.62
Net Investment Income (Loss)(1)		(0.03	)		0.07			(0.01	)		(0.06	)		(0.06	)		(0.10	)		–	*		(0.06	)		(0.10	)		(0.09	)
Realized and Unrealized Gain (Loss) on Investments		(1.17	)		2.68			2.59			4.98			0.19			(1.13	)		2.63			2.52			4.87			0.20
Total from Investment Operations		(1.20	)		2.75			2.58			4.92			0.13			(1.23	)		2.63			2.46			4.77			0.11
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			0.01	(3)		–			–			–	*(2)		–			0.01	(3)
Dividends from Net Investment Income		(0.03	)		(0.01	)		–			–			–			–			–			–			–			–
Distributions from Net Realized Gains		(0.23	)		(0.42	)		(0.28	)		–			–			(0.23	)		(0.42	)		(0.28	)		–			–
Total Distributions		(0.26	)		(0.43	)		(0.28	)		–			–			(0.23	)		(0.42	)		(0.28	)		–			–
Net Asset Value, End of Year	$	21.07		$	22.53		$	20.21		$	17.91		$	12.99		$	20.44		$	21.90		$	19.69		$	17.51		$	12.74
Total Return†		(5.34	)%		13.78	%		14.39	%		37.88	%		1.09	%(3)		(5.62	)%		13.50	%		14.03	%		37.44	%		0.95	%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	1,045,985		$	565,795		$	375,901		$	207,230		$	151,860		$	65,491		$	68,302		$	61,134		$	23,371		$	2,210
Ratio of Expenses to Average Net Assets		0.99	%		0.99	%		0.99	%		1.19	%		1.24	%		1.28	%		1.29	%		1.29	%(4)		1.46	%		1.45	%(5)
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.16	)%		0.32	%		(0.06	)%		(0.39	)%		(0.51	)%		(0.48	)%		(0.02	)%		(0.30	)%(4)		(0.68	)%		(0.74	)%(5)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.10	%		1.15	%		1.28	%		1.28	%		1.24	%		1.39	%		1.45	%		1.58	%		1.61	%		1.54	%
Ratio of Net Investment Income (Loss) to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.27	)%		0.16	%		(0.35	)%		(0.48	)%		(0.51	)%		(0.59	)%		(0.18	)%		(0.59	)%		(0.83	)%		(0.83	)%
Portfolio Turnover Rate		15	%		23	%		24	%		27	%		32	%		15	%		23	%		24	%		27	%		32	%
	Small Cap Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	20.17		$	18.29		$	16.40		$	12.02		$	12.00
Net Investment Income (Loss)(1)		(0.21	)		(0.13	)		(0.19	)		(0.20	)		(0.18	)
Realized and Unrealized Gain (Loss) on Investments		(1.04	)		2.43			2.36			4.58			0.19
Total from Investment Operations		(1.25	)		2.30			2.17			4.38			0.01
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			0.01	(3)
Distributions from Net Realized Gains		(0.23	)		(0.42	)		(0.28	)		–			–
Total Distributions		(0.23	)		(0.42	)		(0.28	)		–			–
Net Asset Value, End of Year	$	18.69		$	20.17		$	18.29		$	16.40		$	12.02
Total Return†		(6.21	)%		12.72	%		13.21	%		36.44	%		0.17	%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	28,220		$	21,015		$	17,802		$	5,576		$	726
Ratio of Expenses to Average Net Assets		1.95	%		1.95	%		1.99	%(4)		2.14	%		2.25	%
Ratio of Net Investment Loss to Average Net Assets		(1.12	)%		(0.66	)%		(1.02	)%(4)		(1.37	)%		(1.54	)%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.06	%		2.11	%		2.28	%		2.31	%		2.25	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(1.23	)%		(0.82	)%		(1.31	)%		(1.54	)%		(1.54	)%
Portfolio Turnover Rate		15	%		23	%		24	%		27	%		32	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset losses relating to a change in valuation methodology of an asset in the securities lending collateral account of the Acquired Funds prior to the Reorganization. Excluding this item, the total returns would have been 1.01%, 0.87%, and 0.08% for Class I, Class A, and Class C, respectively.

⁽⁴⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment had no impact to Class A ratios and Class C ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders.

⁽⁵⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.09% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

93

	Small Cap Index Fund
	Class I									Class R4
	2016			2015			2014(1)			2016			2015(2)
Net Asset Value, Beginning of Year	$	10.66		$	9.83		$	10.00		$	10.66		$	9.83
Net Investment Income (Loss)(3)		0.12			0.11			0.04			0.10			0.08
Realized and Unrealized Gain (Loss) on Investments		(0.66	)		1.04			(0.21	)		(0.65	)		0.75
Total from Investment Operations		(0.54	)		1.15			(0.17	)		(0.55	)		0.83
Dividends from Net Investment Income		(0.10	)		(0.12	)		–			(0.09	)		–
Distributions from Net Realized Gains		(0.12	)		(0.20	)		–			(0.12	)		–
Total Distributions		(0.22	)		(0.32	)		–			(0.21	)		–
Net Asset Value, End of Year	$	9.90		$	10.66		$	9.83		$	9.90		$	10.66
Total Return		(4.96	)%		11.82	%		(1.70	)%		(5.05	)%		11.82	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	8,085		$	5,562		$	4,917		$	1,308		$	274
Ratio of Expenses to Average Net Assets		0.25	%		0.25	%		0.25	%		0.40	%		0.28	%
Ratio of Net Investment Income to Average Net Assets		1.24	%		1.05	%		1.06	%		1.04	%		0.80	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.09	%		2.65	%		2.84	%		2.31	%		3.76	%
Ratio of Net Investment Loss to Average Net Assets (Before Fee Waivers)		(0.60	)%		(1.35	)%		(1.53	)%		(0.87	)%		(2.68	)%
Portfolio Turnover Rate		23	%		18	%		4	%		23	%		18	%

⁽¹⁾  Class I Shares commenced operations on December 30, 2013. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽²⁾  Class R4 Shares commenced operations on December 30, 2013. Prior to April 25, 2015, net assets of this share class represented seed capital; therefore, no 2014 information is presented. All ratios for the period have been annualized. Total return for the period has not been annualized.

⁽³⁾  Per share data calculated using average shares outstanding method.

See Notes to Financial Statements.

94

P N C  B a l a n c e d  A l l o c a t i o  n  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — 33.5%
Consumer Discretionary — 5.2%
American Axle & Manufacturing Holdings*		1,369	$	23
Asbury Automotive Group*		244		14
Bloomin’ Brands		585		11
Bright Horizons Family Solutions*		315		20
Burlington Stores*		1,730		104
Cavco Industries*		245		24
Cheesecake Factory		150		7
Churchill Downs		182		23
Comcast, Cl A		2,530		160
D.R. Horton		5,080		155
Dorman Products*		898		50
Drew Industries		715		55
Foot Locker		3,510		196
Ford Motor		6,420		87
Gannett		1,405		22
Hasbro		1,730		151
Home Depot		2,990		395
HSN		658		34
Lithia Motors, Cl A		652		54
Madison Square Garden, Cl A*		245		41
McDonald’s		2,080		254
Monro Muffler Brake		764		48
MSG Networks, Cl A*		732		13
NACCO Industries, Cl A		256		13
Newell Rubbermaid		1,900		91
NIKE, Cl B		1,670		92
O’Reilly Automotive*		620		164
Papa John’s International		160		10
Pool		306		28
Scripps Networks Interactive, Cl A		2,160		139
Sonic		373		11
Standard Motor Products		481		19
Tractor Supply		1,410		136
Walt Disney		1,940		193
Wolverine World Wide		647		12
Wyndham Worldwide		3,490		235
				3,084
Consumer Staples — 3.5%
Altria Group		6,790		432
Boston Beer, ClA*		72		11
Casey’s General Stores		1,220		147
Constellation Brands, Cl A		800		123
CVS Health		1,190		115
Dr Pepper Snapple Group		910		83
Hershey		1,010		94
Hormel Foods		3,080		106
Ingles Markets, Cl A		334		12
Kroger		2,130		76
PepsiCo		3,551		359
Procter & Gamble		2,165		175
Reynolds American		3,490		173
SpartanNash		425		13
TreeHouse Foods*		381		36
Tyson Foods, Cl A		1,340		86
				2,041
Energy — 1.0%
Exxon Mobil		3,845		342
Occidental Petroleum		1,400		106
Par Pacific Holdings*		725		11

	Number of Shares		Value (000)
Valero Energy		2,060	$	113
World Fuel Services		702		32
				604
Financials — 5.9%
Agree Realty REIT		554		24
American Assets Trust REIT		272		11
AMERISAFE		131		8
AmTrust Financial Services		2,727		72
Bank of the Ozarks		1,735		68
Banner		208		9
BNY Mellon		2,260		95
Capital Bank Financial, Cl A		802		25
Capital One Financial		1,100		81
Care Capital Properties REIT		282		7
CenterState Banks		1,230		19
Cincinnati Financial		1,510		104
Credit Acceptance*#		295		55
Diamond Hill Investment Group*		60		11
Eagle Bancorp*		1,360		70
Employers Holdings		732		22
Extra Space Storage REIT		3,450		321
FactSet Research Systems		600		95
FBL Financial Group, Cl A		239		15
Fidelity Southern		739		12
First Financial Bancorp		1,050		21
First Merchants		404		10
First Midwest Bancorp		452		8
Home BancShares		604		27
Huntington Bancshares		15,200		159
JPMorgan Chase		6,678		436
KCG Holdings, Cl A*		1,769		25
Lamar Advertising, Cl A REIT		2,030		132
LegacyTexas Financial Group		1,632		44
Mercantile Bank		715		18
MetLife		1,670		76
National General Holdings		2,518		52
Opus Bank		208		8
Post Properties REIT		161		10
PRA Group*		1,938		53
Principal Financial Group		2,460		110
PS Business Parks REIT		187		18
RLI		839		55
Ryman Hospitality Properties REIT		281		14
Simon Property Group REIT		500		99
South State		437		32
Summit Hotel Properties REIT		839		10
Sun Communities REIT		301		21
T. Rowe Price Group		1,260		97
Travelers		1,630		186
U.S. Bancorp		4,070		174
Wells Fargo		7,019		356
Welltower REIT		1,220		84
Wilshire Bancorp		1,586		18
WSFS Financial		401		14
				3,491
Healthcare — 4.4%
Amgen		2,500		395
Amsurg*		179		13
ANI Pharmaceuticals*#		405		22
Biogen*		380		110

See Notes to Financial Statements.

95

	Number of Shares		Value (000)
COMMON STOCKS — continued
Healthcare — continued
BioSpecifics Technologies*		506	$	19
Cantel Medical		399		26
Cigna		640		82
CorVel*		391		19
Dyax* (A) (B)		677		1
Edwards Lifesciences*		1,080		106
Gilead Sciences		1,540		134
INC Research Holdings, Cl A*		186		8
Ironwood Pharmaceuticals*		929		12
Johnson & Johnson		4,407		497
Merck		3,431		193
Molina Healthcare*		267		13
Natus Medical*		341		11
Neogen*		1,136		56
Neurocrine Biosciences*		194		10
PAREXEL International*		1,019		64
Pfizer		11,381		395
Quintiles Transnational Holdings*		1,450		98
Thermo Fisher Scientific		1,140		173
U.S. Physical Therapy		345		20
Universal Health Services, Cl B		1,000		135
				2,612
Industrials — 4.5%
3M		960		162
AECOM*		464		15
Alaska Air Group		1,230		82
American Woodmark*		157		13
Astronics*		1,191		46
B/E Aerospace		409		19
Carlisle		1,060		110
Cintas		1,440		136
Colfax*		483		13
Comfort Systems USA		645		21
Curtiss-Wright		206		17
Douglas Dynamics		450		10
EnerSys		1,156		69
Ennis		884		16
Equifax		1,240		156
Federal Signal		1,164		15
General Cable		507		7
General Dynamics		1,850		262
General Electric		5,790		175
Genesee & Wyoming, Cl A*		244		15
GP Strategies*		717		17
Hawaiian Holdings*		370		15
HEICO		678		45
Honeywell International		2,010		229
KLX*		616		20
Lockheed Martin		1,230		291
Multi-Color		262		16
National Presto Industries#		220		20
Northrop Grumman		590		125
On Assignment*		1,098		41
Patrick Industries*		427		23
Raytheon		910		118
Southwest Airlines		3,060		130
Toro		325		29
United Technologies		950		96
Universal Forest Products		422		35
Wabash National*		1,462		21

	Number of Shares		Value (000)
Wesco Aircraft Holdings*		2,816	$	40
				2,670
Information Technology — 5.3%
Alphabet, Cl A*		485		363
Apple		4,799		479
Arrow Electronics*		1,610		104
Aspen Technology*		536		20
CACI International, Cl A*		148		15
CDW		2,920		124
Cisco Systems		11,212		326
CoreLogic*		601		22
Euronet Worldwide*		170		14
ExlService Holdings*		339		17
Facebook, Cl A*		2,590		308
Intel		5,690		180
Lam Research		1,820		151
Manhattan Associates*		1,404		93
Microsemi*		785		26
Microsoft		3,012		160
Net 1 UEPS Technologies*		949		10
OSI Systems*		351		19
Paychex		2,650		144
Sanmina*		359		10
Silicon Laboratories*		383		19
Synaptics*		277		19
Take-Two Interactive Software*		421		16
Tech Data*		260		20
Texas Instruments		4,950		300
Tyler Technologies*		364		56
Vantiv, Cl A*		1,630		88
WEX*		394		36
				3,139
Materials — 1.6%
AEP Industries		326		20
Air Products & Chemicals		620		89
Balchem		574		34
Celanese, Series A		2,200		155
Dow Chemical		7,420		381
Graphic Packaging Holding		678		9
Innophos Holdings		762		29
International Paper		1,700		72
Minerals Technologies		207		12
Neenah Paper		650		45
PolyOne		353		13
PPG Industries		800		86
Sonoco Products		539		26
				971
Telecommunication Services — 0.6%
8x8*		907		11
AT&T		3,447		135
Verizon Communications		3,590		183
				329
Utilities — 1.5%
American Electric Power		2,020		131
American States Water		571		22
American Water Works		2,530		188
NextEra Energy		2,118		254
WEC Energy Group		1,800		108

See Notes to Financial Statements.

96

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M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Utilities — continued
WGL Holdings		326	$	21
Xcel Energy		3,250		135
				859
Total Common Stocks (Cost $16,286)				19,800
FOREIGN COMMON STOCKS — 12.7%
Consumer Discretionary — 1.7%
Bridgestone (Japan) (C)		600		20
Carnival (Panama)		4,230		202
Compass Group PLC (United Kingdom)		3,761		70
Dufry AG (Switzerland)*		261		35
Helen of Troy (Bermuda)*		464		48
Industria de Diseno Textil SA (Spain)		1,866		63
Just Eat PLC (United Kingdom)*		10,242		67
lululemon athletica (Canada)*		574		37
LVMH Moet Hennessy Louis Vuitton SE (France)		198		32
Pandora A/S (Denmark)		618		92
Signet Jewelers (United Kingdom)		363		36
Sony, ADR (Japan)		3,671		102
SuperGroup PLC (United Kingdom)		1,917		39
TAL Education Group, ADR (China)*		914		49
XXL ASA (Norway) 144A		2,144		26
Zalando SE (Germany)* 144A		1,691		50
zooplus AG (Germany)*		225		33
				1,001
Consumer Staples — 1.1%
Anheuser-Busch InBev NV, ADR (Belgium)		702		89
Carrefour SA (France)		2,173		59
Davide Campari-Milano SpA (Italy)		5,368		52
Fresh Del Monte Produce (Cayman Islands)		333		17
Heineken NV (Netherlands)		457		42
Kao (Japan) (C)		900		49
Koninklijke Ahold NV (Netherlands)		4,115		91
Nestle SA (Switzerland)		1,176		87
Puregold Price Club (Philippines)		43,700		39
Reckitt Benckiser Group PLC (United Kingdom)		1,220		122
				647
Energy — 0.7%
Baytex Energy (Canada)		4,670		23
DHT Holdings (Marshall Islands)		1,589		9
Schlumberger (Curacao)		2,010		153
TOTAL SA, ADR (France)		4,360		212
				397
Financials — 2.2%
AIA Group (Hong Kong)		15,159		89
Allied World Assurance Holdings AG (Switzerland)		220		8
Argo Group International Holdings (Bermuda)		459		24
Banco Macro SA, ADR (Argentina)		292		18
Cerved Information Solutions SpA (Italy)*		3,575		30
Chubb (Switzerland)		2,523		319
Colliers International Group (Canada)		717		28
Daito Trust Construction (Japan) (C)		400		58
Danske Bank A/S (Denmark)		2,553		74
Deutsche Wohnen AG (Germany)		2,402		77
Equity Group Holdings (Kenya)		98,594		39

	Number of Shares		Value (000)
Essent Group (Bermuda)*		403	$	9
FinecoBank Banca Fineco SpA (Italy)		3,150		23
FirstService (Canada)		1,341		63
HDFC Bank, ADR (India)		1,416		91
IRF European Finance Investments (Bermuda)* (A) (B)		31,579		–
Mitsubishi Estate (Japan) (C)		4,000		77
Mitsui Fudosan (Japan) (C)		2,000		49
Nihon M&A Center (Japan) (C)		1,000		61
Ping An Insurance Group of China, Cl H (China)		13,886		62
VIB Vermoegen AG (Germany)		2,055		44
Virgin Money Holdings PLC (United Kingdom)		7,363		39
				1,282
Healthcare — 2.4%
Bayer AG (Germany)		874		83
Clinigen Group PLC (United Kingdom)		5,326		43
Concordia Healthcare (Canada)#		688		21
CYBERDYNE (Japan)* (C)		3,800		89
Flamel Technologies SA, ADR (France)*		2,059		22
GN Store Nord A/S (Denmark)		2,397		49
Grifols SA (Spain)		4,458		101
Horizon Pharma PLC (Ireland)*		701		12
Hoya (Japan) (C)		1,900		66
ICON PLC (Ireland)*		1,396		98
M3 (Japan) (C)		2,000		57
Meda AB, Cl A (Sweden)		3,909		69
NMC Health PLC (United Kingdom)		4,736		79
Novo Nordisk A/S, ADR (Denmark)		2,565		144
Ono Pharmaceutical (Japan) (C)		3,500		155
Roche Holding AG (Switzerland)		551		145
Sawai Pharmaceutical (Japan) (C)		600		43
Shire PLC (United Kingdom)		718		44
Teva Pharmaceutical Industries, ADR (Israel)		1,620		84
Vitrolife AB (Sweden)		842		43
				1,447
Industrials — 1.2%
Ashtead Group PLC (United Kingdom)		5,520		78
Geberit AG (Switzerland)		177		68
Hexagon AB, Cl B (Sweden)		1,497		58
Ingersoll-Rand PLC (Ireland)		2,070		138
Kingspan Group PLC (Ireland)		2,309		65
Nidec (Japan) (C)		700		54
Novanta (Canada)*		1,409		21
Rational AG (Germany)		153		72
Schneider Electric SE (France)		413		27
Siemens AG (Germany)		453		49
SMC (Japan) (C)		200		50
Tomra Systems ASA (Norway)		3,493		39
				719
Information Technology — 2.8%
Accenture PLC, Cl A (Ireland)		2,700		321
Alibaba Group Holding, ADR (China)*		747		61
Amdocs (Guernsey)		2,320		134
ARM Holdings PLC, ADR (United Kingdom)		1,415		61
Check Point Software Technologies (Israel)*#		1,820		155
Dassault Systemes SA (France)		549		44
EVERTEC (Puerto Rico)		1,590		24
Fleetmatics Group PLC (Ireland)*		1,605		65
Ingenico Group (France)		723		88

See Notes to Financial Statements.

97

	Number of Shares		Value (000)
FOREIGN COMMON STOCKS — continued
Information Technology — continued
Mellanox Technologies (Israel)*		542	$	26
Mobileye NV (Israel)*		1,320		50
NCSoft (South Korea)		237		48
NXP Semiconductors NV (Netherlands)*		708		67
Open Text (Canada)		662		39
SAP SE, ADR (Germany)		1,094		89
SolarEdge Technologies (Israel)*		1,957		43
TE Connectivity (Switzerland)		1,640		98
Tencent Holdings (Hong Kong)		5,162		115
Wirecard AG (Germany)		2,242		100
				1,628
Materials — 0.3%
Hexpol AB (Sweden)		4,808		49
James Hardie Industries PLC (Australia)		5,087		77
Randgold Resources, ADR (United Kingdom)#		909		77
				203
Telecommunication Services — 0.2%
Magyar Telekom Telecommunications PLC (Hungary)		47,778		77
Safaricom (Kenya)		321,008		54
				131
Utilities — 0.1%
Red Electrica SA (Spain)		407		36
				36
Total Foreign Common Stocks (Cost $6,497)				7,491
EXCHANGE-TRADED FUNDS — 14.8%
iShares MSCI EAFE Value ETF†		100,238		4,592
iShares MSCI Emerging Markets ETF†		42,511		1,408
iShares TIPS Bond ETF†		5,400		616
SPDR® S&P 500® ETF Trust		7,300		1,534
Vanguard Short-Term Inflation-Protected Securities ETF		12,400		608
Total Exchange-Traded Funds (Cost $10,229)				8,758
MASTER LIMITED PARTNERSHIPS — 0.2%
Energy — 0.2%
Magellan Midstream Partners LP		1,320		92
Shell Midstream Partners LP		228		8
Valero Energy Partners LP		292		14
				114
Financials — 0.0%
Ares Management LP		732		10
Total Master Limited Partnerships (Cost $116)				124

	Par (000)		Value (000)
ASSET-BACKED SECURITIES — 2.9%
Automotive — 1.8%
Fifth Third Auto Trust,
Series 2015-1, Cl A3
1.420%, 03/16/20	$	95	$	95
Ford Credit Auto Lease Trust,
Series 2016-A, Cl A2A
1.420%, 11/15/18		90		90
Ford Credit Auto Owner Trust,
Series 2014-C, Cl A3
1.060%, 05/15/19		75		75
Ford Credit Auto Owner Trust,
Series 2016-A, Cl A3
1.390%, 07/15/20		25		25
Honda Auto Receivables Owner Trust,
Series 2014-3, Cl A3
0.880%, 06/15/18		58		58
Honda Auto Receivables Owner Trust,
Series 2016-2, Cl A3
1.390%, 04/15/20		35		35
Hyundai Auto Receivables Trust,
Series 2015-A, Cl A2
0.680%, 10/16/17		25		25
Hyundai Auto Receivables Trust,
Series 2015-B, Cl A2A
0.690%, 04/16/18		102		102
Mercedes-Benz Auto Receivables Trust,
Series 2015-1, Cl A2A
0.820%, 06/15/18		161		161
Nissan Auto Receivables Owner Trust,
Series 2015-B, Cl A3
1.340%, 03/16/20		250		250
Toyota Auto Receivables Owner Trust,
Series 2016-B, Cl A3
1.300%, 04/15/20		70		70
Volkswagen Auto Lease Trust,
Series 2015-A, Cl A3
1.250%, 12/20/17		65		65
				1,051
Credit Cards — 1.0%
American Express Credit Account Master Trust,
Series 2014-3, Cl A
1.490%, 04/15/20		115		116
BA Credit Card Trust,
Series 2015-A2, Cl A
1.360%, 09/15/20		240		241
Capital One Multi-Asset Execution Trust,
Series 2014-A5, Cl A5
1.480%, 07/15/20		110		110
Citibank Credit Card Issuance Trust,
Series 2013-A3, Cl A3
1.110%, 07/23/18		105		105
				572

See Notes to Financial Statements.

98

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M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
ASSET-BACKED SECURITIES — continued
Equipment — 0.1%
John Deere Owner Trust,
Series 2014-B, Cl A3
1.070%, 11/15/18	$	88	$	88
Total Asset-Backed Securities (Cost $1,709)				1,711
CORPORATE BONDS — 12.3%
Aerospace — 0.3%
Lockheed Martin
3.800%, 03/01/45		95		93
Spirit AeroSystems
6.750%, 12/15/20		66		68
				161
Automotive — 0.4%
Ford Motor Credit LLC (MTN)
1.082%, 11/08/16 (D)		85		85
General Motors
6.600%, 04/01/36		20		23
General Motors Financial
3.200%, 07/13/20		65		65
Lear
5.375%, 03/15/24		50		53
				226
Cable — 0.8%
21st Century Fox America
8.450%, 08/01/34		60		87
Belo
7.750%, 06/01/27		50		53
Cablevision Systems
8.625%, 09/15/17		50		53
Charter Communications Operating LLC
6.384%, 10/23/35 144A		90		103
Discovery Communications LLC
3.250%, 04/01/23		75		73
4.900%, 03/11/26		25		26
Sinclair Television Group
6.375%, 11/01/21		25		26
Time Warner Cable
4.500%, 09/15/42		70		62
				483
Consumer Discretionary — 0.2%
DreamWorks Animation SKG
6.875%, 08/15/20 144A		50		53
Hasbro
6.300%, 09/15/17		70		74
				127
Consumer Services — 0.3%
Avon Products
6.750%, 03/15/23		35		26
Graham Holdings
7.250%, 02/01/19		45		49
H&E Equipment Services
7.000%, 09/01/22#		25		26
Royal Caribbean Cruises
7.500%, 10/15/27		42		49

	Par (000)		Value (000)
Sotheby’s
5.250%, 10/01/22 144A	$	25	$	24
				174
Energy — 1.5%
Anadarko Petroleum
4.850%, 03/15/21		15		16
Boardwalk Pipelines LP
3.375%, 02/01/23		75		66
5.950%, 06/01/26		15		15
Cloud Peak Energy Resources LLC
8.500%, 12/15/19		60		27
ConocoPhillips
4.150%, 11/15/34		10		10
6.500%, 02/01/39		40		49
Energy Transfer Partners LP
6.125%, 12/15/45		30		28
EQT
5.150%, 03/01/18		30		30
4.875%, 11/15/21		85		86
Freeport-McMoran Oil & Gas LLC
6.875%, 02/15/23		45		42
Kinder Morgan Energy Partners LP
6.500%, 04/01/20		30		33
Kinder Morgan Energy Partners LP (MTN)
6.950%, 01/15/38		80		83
McDermott International
8.000%, 05/01/21 144A		40		35
Newfield Exploration
5.375%, 01/01/26		30		29
Petroleos Mexicanos
6.000%, 03/05/20		25		26
Petroleos Mexicanos (GMTN)
4.250%, 01/15/25		25		23
PHI
5.250%, 03/15/19		30		27
Phillips 66
4.650%, 11/15/34		60		61
Rowan
4.875%, 06/01/22		100		78
4.750%, 01/15/24		10		8
Tesoro
5.375%, 10/01/22		35		36
Transocean
6.000%, 03/15/18		30		29
Williams Partners LP
4.125%, 11/15/20		60		56
				893
Financials — 3.5%
American Express
6.800%, 09/01/66 (D)		55		55
American Express Credit (GMTN)
2.250%, 08/15/19		65		66
Bank of America
6.250%, 09/29/49 (D)		60		61
Bank of America (MTN)
5.625%, 07/01/20		50		56
4.000%, 04/01/24		60		63
4.200%, 08/26/24		60		61
BankUnited
4.875%, 11/17/25		25		25

See Notes to Financial Statements.

99

	Par (000)		Value (000)
CORPORATE BONDS — continued
Financials — continued
Capital One Financial
3.500%, 06/15/23	$	88	$	90
Citigroup
2.150%, 07/30/18		30		30
2.050%, 12/07/18		10		10
4.450%, 09/29/27		110		112
6.250%, 12/29/49 (D)		40		41
Credit Suisse AG (GMTN)
5.400%, 01/14/20		60		65
Deutsche Bank AG
2.950%, 08/20/20		60		60
Deutsche Bank AG (GMTN)
2.850%, 05/10/19		30		30
Goldman Sachs Group
6.250%, 09/01/17		55		58
5.750%, 01/24/22		50		57
HSBC Holdings PLC
5.100%, 04/05/21		105		115
International Lease Finance
3.875%, 04/15/18		45		46
JPMorgan Chase
4.625%, 05/10/21		60		66
3.375%, 05/01/23		55		55
7.900%, 12/29/49 (D)		70		72
Morgan Stanley (GMTN)
2.125%, 04/25/18		110		111
4.875%, 11/01/22		65		71
Royal Bank of Canada
1.200%, 09/19/17		175		175
Royal Bank of Scotland Group PLC
6.000%, 12/19/23		60		63
State Street
5.250%, 12/29/49 (D)		45		46
Visa
4.150%, 12/14/35		105		114
Wells Fargo
5.900%, 12/29/49 (D)		65		67
Wells Fargo (MTN)
3.300%, 09/09/24		55		57
Westpac Banking
2.250%, 07/30/18		55		56
				2,054
Food, Beverage & Tobacco — 0.3%
Anheuser-Busch InBev Finance
4.900%, 02/01/46		75		83
Constellation Brands
6.000%, 05/01/22		50		56
Kraft Heinz Foods
5.000%, 06/04/42		30		33
5.200%, 07/15/45 144A		30		34
				206
Healthcare — 0.9%
Actavis Funding SCS
3.450%, 03/15/22		135		137
Amgen
4.400%, 05/01/45		95		95
DaVita HealthCare Partners
5.750%, 08/15/22		50		52

	Par (000)		Value (000)
HCA
4.250%, 10/15/19	$	60	$	62
Johnson & Johnson
3.550%, 03/01/36		95		99
Select Medical
6.375%, 06/01/21		30		29
Teva Pharmaceutical Finance BV
2.950%, 12/18/22		60		60
				534
Industrials — 0.9%
Avnet
4.875%, 12/01/22		55		59
4.625%, 04/15/26		50		50
Ball
4.000%, 11/15/23		55		54
Bombardier
7.750%, 03/15/20 144A		30		30
CNH Industrial Capital LLC
6.250%, 11/01/16		35		35
Crown Cork & Seal
7.375%, 12/15/26		20		22
General Electric
4.125%, 10/09/42		65		69
KLX
5.875%, 12/01/22 144A		50		49
Masco
7.750%, 08/01/29		50		58
Owens-Brockway Glass Container
6.375%, 08/15/25 144A		25		27
Owens-Illinois
7.800%, 05/15/18		10		11
PulteGroup
7.875%, 06/15/32		40		45
				509
Information Technology — 0.1%
Expedia
5.000%, 02/15/26 144A		60		60
				60
Insurance — 0.5%
Berkshire Hathaway Finance
4.250%, 01/15/21		90		99
MetLife
6.400%, 12/15/36		65		70
Teachers Insurance & Annuity Association of America
4.900%, 09/15/44 144A		65		70
XLIT
4.450%, 03/31/25		40		40
				279
Materials — 0.1%
ArcelorMittal
7.250%, 02/25/22#		25		26
Freeport-McMoRan
3.550%, 03/01/22		30		25
				51

See Notes to Financial Statements.

100

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M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
CORPORATE BONDS — continued
Real Estate Investment Trusts — 0.4%
American Campus Communities Operating Partnership LP
4.125%, 07/01/24	$	95	$	98
Digital Realty Trust LP
5.250%, 03/15/21		55		61
Realty Income
3.250%, 10/15/22		100		100
				259
Retail — 0.6%
Hanesbrands
6.375%, 12/15/20		70		72
4.625%, 05/15/24 144A		25		25
Levi Strauss
6.875%, 05/01/22		30		32
Priceline Group
3.600%, 06/01/26		80		81
Wal-Mart Stores
5.250%, 09/01/35		50		63
5.625%, 04/01/40		75		96
				369
Technology — 0.5%
Apple
3.850%, 05/04/43		125		122
KLA-Tencor
4.125%, 11/01/21		105		111
Oracle
4.300%, 07/08/34		65		69
				302
Telecommunications — 0.4%
AT&T
4.600%, 02/15/21		40		44
4.450%, 04/01/24		65		70
DigitalGlobe
5.250%, 02/01/21 144A		35		32
Verizon Communications
4.272%, 01/15/36		90		89
				235
Transportation — 0.3%
Burlington Northern Santa Fe LLC
4.550%, 09/01/44		60		65
ERAC USA Finance LLC
5.625%, 03/15/42 144A		50		58
FedEx
3.900%, 02/01/35		65		64
				187
Utilities — 0.3%
Berkshire Hathaway Energy
6.125%, 04/01/36		80		103
DPL
6.500%, 10/15/16		11		11
Exelon Generation LLC
2.950%, 01/15/20		20		20

	Par (000)		Value (000)
4.000%, 10/01/20#	$	65	$	69
				203
Total Corporate Bonds (Cost $7,193)				7,312
MUNICIPAL BOND — 0.2%
Texas — 0.2%
Texas Transportation Commission (RB) Series B
5.178%, 04/01/30		85		105
Total Municipal Bond (Cost $101)				105
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — 10.5%
Federal Home Loan Mortgage Corporation — 1.5%
4.500%, 06/01/41		127		140
4.000%, 01/01/41		95		101
4.000%, 10/01/43		114		122
4.000%, 10/01/44		200		214
3.500%, 06/01/42		115		121
3.500%, 12/01/42		202		211
				909
Federal National Mortgage Association — 8.2%
5.500%, 07/01/33		3		3
5.500%, 05/01/35		23		25
5.000%, 08/01/40		148		165
4.500%, 06/01/40		169		185
4.500%, 01/01/41		100		109
4.500%, 03/01/41		94		102
4.500%, 04/01/41		138		151
4.000%, 03/01/26		26		28
4.000%, 12/01/40		90		97
4.000%, 01/01/41		128		138
4.000%, 02/01/41		109		117
4.000%, 02/01/42		104		111
4.000%, 07/01/42		140		150
4.000%, 07/01/45		90		96
4.000%, 11/01/45		206		220
3.500%, 01/01/26		103		109
3.500%, 10/01/26		70		74
3.500%, 01/01/28		95		101
3.500%, 11/01/29		131		139
3.500%, 03/01/41		104		109
3.500%, 06/01/42		137		144
3.500%, 08/01/42		203		213
3.500%, 10/01/42		153		160
3.500%, 02/01/43		114		120
3.500%, 07/01/43		108		113
3.500%, 08/01/43		103		108
3.500%, 08/01/44		169		178
3.500%, 12/01/45		301		315
3.000%, 06/01/27		131		137
3.000%, 06/01/28		78		81
3.000%, 11/01/42		161		166
3.000%, 04/01/43		441		452
3.000%, 05/01/43		151		155
2.500%, 11/01/27		253		260
				4,831

See Notes to Financial Statements.

101

	Par (000)		Value (000)
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS — continued
Government National Mortgage Association — 0.8%
4.500%, 10/20/45	$	186	$	200
4.000%, 09/15/41		91		97
4.000%, 10/20/43		56		59
3.500%, 07/15/42		45		48
3.500%, 12/20/42		59		63
				467
Total U.S. Government Agency Mortgage-Backed Obligations (Cost $6,067)				6,207
U.S. TREASURY OBLIGATIONS — 11.7%
U.S. Treasury Bonds — 2.1%
4.500%, 02/15/36		380		519
3.750%, 08/15/41		235		289
3.125%, 08/15/44		385		424
				1,232
U.S. Treasury Notes — 9.6%
3.000%, 08/31/16		150		151
2.625%, 08/15/20		50		53
2.375%, 08/15/24		330		345
2.250%, 11/15/24		10		10
2.250%, 11/15/25		230		238
2.125%, 08/15/21		260		269
2.125%, 05/15/25		510		523
2.000%, 02/28/21		420		432
2.000%, 02/15/23		55		56
1.750%, 10/31/20		960		977
1.625%, 04/30/19		220		224
1.625%, 12/31/19		350		356
1.625%, 08/15/22		155		156
1.500%, 06/30/16		295		295
1.500%, 08/31/18		210		213
1.500%, 12/31/18		520		527
1.000%, 03/31/17		130		130
0.750%, 01/15/17		145		145
0.625%, 07/15/16		60		60
0.625%, 11/15/16		195		195
0.625%, 12/15/16		80		80
0.500%, 07/31/16		235		235
				5,670
Total U.S. Treasury Obligations (Cost $6,785)				6,902
	Number of Shares
MONEY MARKET FUND — 1.6%
PNC Government Money Market Fund, Class I Shares 0.080%† (E)		985,164		985
Total Money Market Fund (Cost $985)				985
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 100.4% (Cost $55,968)				59,395

	Number of Shares		Value (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 0.8%
Affiliated Money Market Fund — 0.7%
PNC Government Money Market Fund, Class I Shares 0.080%† (E)		393,689	$	394
Money Market Fund — 0.1%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250% (E)		49,658		49
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $443)‡				443
TOTAL INVESTMENTS — 101.2% (Cost $56,411)**				59,838
Other Assets & Liabilities – (1.2)%				(699	)
TOTAL NET ASSETS — 100.0%			$	59,139

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $56,485.

Gross unrealized appreciation (000)	$5,787
Gross unrealized depreciation (000)	(2,434	)
Net unrealized appreciation (000)	$3,353

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $437 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Security fair valued using methods approved by the Board of Trustees.

(B) Illiquid Security. Total value of illiquid securities is $1 (000) and represents less than 0.1% of net assets as of May 31, 2016.

(C) All or a portion of the security has been segregated on the Fund’s books and records for open forward currency contracts.

(D) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(E) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $676 (000) and represents 1.1% of net assets as of May 31, 2016.

See Notes to Financial Statements.

102

P N C  B a l a n c e d  A l l o c a t i o  n  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Forward Currency Contracts:

Settlement Month	Type		Contracts to Deliver (000)			In Exchange For (000)			Contracts at Value (000)			Unrealized Appreciation/ Depreciation (000)
11/16		Sell*		JPY	66,718		$	558		$	606		$	(48	)
11/16		Buy*		JPY	66,718			556			606			50
													$	2

*Counterparty is State Street Bank

JPY — Japanese Yen

Assets in the amount of $831,998 have been segregated on the Fund’s books and records.

See Notes to Financial Statements.

103

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Other Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Asset-Backed Securities		$	–		$	1,711		$	–		$	1,711
Common Stocks			19,799			–			1			19,800
Corporate Bonds			–			7,312			–			7,312
Exchange-Traded Funds			8,758			–			–			8,758
Foreign Common Stocks:
Argentina			18			–			–			18
Australia			–			77			–			77
Belgium			89			–			–			89
Bermuda			81			–			–			81
Canada			232			–			–			232
Cayman Islands			17			–			–			17
China			110			62			–			172
Curacao			153			–			–			153
Denmark			144			215			–			359
France			234			250			–			484
Germany			133			464			–			597
Guernsey			134			–			–			134
Hong Kong			–			204			–			204
Hungary			77			–			–			77
India			91			–			–			91
Ireland			699			–			–			699
Israel			358			–			–			358
Italy			–			105			–			105
Japan			102			828			–			930
Kenya			93			–			–			93
Marshall Islands			9			–			–			9
Netherlands			67			133			–			200
Norway			–			65			–			65
Panama			202			–			–			202
Philippines			39			–			–			39
Puerto Rico			24			–			–			24
South Korea			–			48			–			48
Spain			–			200			–			200
Sweden			–			219			–			219
Switzerland			426			334			–			760
United Kingdom			253			502			–			755
Master Limited Partnerships			124			–			–			124
Money Market Fund			985			–			–			985
Municipal Bond			–			105			–			105
Short-Term Investments Purchased with Collateral From Securities Loaned			443			–			–			443

See Notes to Financial Statements.

104

P N C  B a l a n c e d  A l l o c a t i o  n  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Other Significant Unobservable Inputs (000)			Total Value (000)
U.S. Government Agency
Mortgage-Backed Obligations		$	–		$	6,207		$	–		$	6,207
U.S. Treasury Obligations			–			6,902			–			6,902
Total Assets - Investments in Securities		$	33,894		$	25,943		$	1		$	59,838
	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Other Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Other Financial Instruments
Forward Currency Contracts		$	–		$	50		$	–		$	50
Total Assets - Other Financial Instruments		$	–		$	50		$	–		$	50

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	443		$	–		$	443
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	443		$	–		$	443
Other Financial Instruments
Forward Currency Contracts		$	–		$	48		$	–		$	48
Total Liabilities - Other Financial Instruments		$	–		$	48		$	–		$	48

There were no material transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

105

P N C  I n t e r n a t i o n a l  E q u i t y  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
FOREIGN COMMON STOCKS — 92.9%
Consumer Discretionary — 16.5%
Barratt Developments PLC (United Kingdom)		1,089,765	$	9,320
Bellway PLC (United Kingdom)		230,382		9,110
Bridgestone (Japan) (A)		52,102		1,783
Christian Dior SA (France)		48,700		7,948
Cie Generale des Etablissements Michelin (France)#		78,200		7,952
Compass Group PLC (United Kingdom)		267,809		4,986
Dufry AG (Switzerland)*		18,987		2,551
Duni AB (Sweden)		417,000		5,987
Industria de Diseno Textil SA (Spain)		129,799		4,385
International Game Technology PLC (United Kingdom)		487,229		9,238
IPSOS (France)		109,172		3,434
Just Eat PLC (United Kingdom)*		727,918		4,793
Kia Motors (South Korea)		205,600		8,043
lululemon athletica (Canada)*		43,074		2,801
LVMH Moet Hennessy Louis Vuitton SE (France)		14,208		2,275
Pandora A/S (Denmark)		40,789		6,062
Persimmon PLC (United Kingdom)		293,145		8,918
REXLot Holdings (Hong Kong)		29,533,868		661
Signet Jewelers (United Kingdom)		25,347		2,509
Sony, ADR (Japan)		246,516		6,868
SuperGroup PLC (United Kingdom)		140,260		2,838
TAL Education Group ADR (China)*#		66,928		3,575
Taylor Wimpey PLC (United Kingdom)		3,045,938		9,045
XXL ASA (Norway) 144A		157,014		1,894
Zalando SE (Germany)* 144A		118,745		3,483
zooplus AG (Germany)*		16,857		2,458
				132,917
Consumer Staples — 7.4%
Anheuser-Busch InBev SA/NV (Belgium)		45,416		5,740
Asahi Group Holdings (Japan)		255,500		8,659
Carrefour SA (France)#		154,238		4,180
Davide Campari-Milano SpA (Italy)		402,860		3,895
Greencore Group PLC (Ireland)		1,470,899		7,335
Heineken NV (Netherlands)		30,112		2,798
Kao (Japan) (A)		68,500		3,746
Koninklijke Ahold NV (Netherlands)		298,383		6,615
Nestle SA (Switzerland)		75,675		5,592
Puregold Price Club (Philippines)		2,764,400		2,483
Reckitt Benckiser Group PLC (United Kingdom)		88,040		8,765
				59,808
Energy — 2.8%
Sasol (South Africa)		268,250		8,114
Thai Oil PCL (Thailand)		4,708,850		8,349
WorleyParsons (Australia)#		1,244,600		5,926
				22,389
Financials — 15.7%
AIA Group (Hong Kong)		1,016,004		5,966
Cerved Information Solutions SpA (Italy)		285,709		2,379
Daito Trust Construction (Japan) (A)		26,000		3,767
Danske Bank A/S (Denmark)		167,167		4,826
Deutsche Wohnen AG (Germany)		169,711		5,454
DNB ASA (Norway)		677,544		8,667
Equity Group Holdings (Kenya)		6,511,925		2,549
FinecoBank Banca Fineco SpA (Italy)		224,910		1,643
Hannover Rueck SE (Germany)		79,000		8,905

	Number of Shares		Value (000)
HDFC Bank, ADR (India)		92,958	$	5,983
Investor AB, Cl B (Sweden)		249,645		8,688
IRF European Finance Investments (Bermuda)* (B) (C)		284,500		–
Mitsubishi Estate (Japan) (A)		275,000		5,267
Mitsui Fudosan (Japan) (A)		174,000		4,238
Muenchener Rueckversicherungs AG (Germany)		39,300		7,389
Nihon M&A Center (Japan) (A)		71,000		4,315
Ping An Insurance Group of China, Cl H (China)		915,024		4,106
Sberbank of Russia, ADR (Russia)		467,600		3,919
Siam Commercial Bank PCL (Thailand)		2,337,500		8,750
SpareBank 1 SR Bank ASA (Norway)		1,267,853		6,213
Standard Chartered PLC (United Kingdom)		1,171,318		8,948
Svenska Handelsbanken AB (Sweden)		672,300		8,611
VIB Vermoegen AG (Germany)		145,242		3,087
Virgin Money Holdings PLC (United Kingdom)		535,504		2,859
				126,529
Healthcare — 13.3%
Bayer AG (Germany)		57,391		5,466
Clinigen Group PLC (United Kingdom)		415,669		3,346
CYBERDYNE (Japan)*# (A)		258,600		6,029
GN Store Nord A/S (Denmark)		165,393		3,381
Grifols SA (Spain)		299,644		6,789
Hoya (Japan) (A)		134,500		4,708
ICON PLC (Ireland)*		76,354		5,378
M3 (Japan) (A)		149,700		4,275
Meda AB, Cl A (Sweden)		261,440		4,640
NMC Health PLC (United Kingdom)		359,385		5,986
Novartis AG (Switzerland)		110,166		8,755
Novo Nordisk A/S, ADR (Denmark)		169,069		9,475
Ono Pharmaceutical (Japan) (A)		242,300		10,703
Roche Holding AG (Switzerland)		39,493		10,373
Sawai Pharmaceutical (Japan) (A)		43,300		3,071
Shire PLC (United Kingdom)		49,066		3,032
Teva Pharmaceutical Industries, ADR (Israel)		163,930		8,503
Vitrolife AB (Sweden)		62,210		3,196
				107,106
Industrials — 9.9%
Ashtead Group PLC (United Kingdom)		404,174		5,711
BBA Aviation PLC (United Kingdom)		2,307,349		6,763
Caverion (Finland)		254,238		1,742
Geberit AG (Switzerland)		13,801		5,278
Hexagon AB, Cl B (Sweden)		90,985		3,534
Kingspan Group PLC (Ireland)		163,237		4,587
Kone OYJ, Cl B (Finland)		172,200		8,142
Konecranes OYJ (Finland)#		343,382		9,500
Loomis AB, Cl B (Sweden)		278,831		7,368
Nidec (Japan) (A)		47,500		3,639
Rational AG (Germany)		10,862		5,131
Schneider Electric SE (France)		29,502		1,907
Siemens AG (Germany)		36,089		3,888
SMC (Japan) (A)		15,800		3,991
Tomra Systems ASA (Norway)		280,811		3,119
Trevi Finanziaria Industriale SpA (Italy)#		1,719,170		2,862
YIT OYJ (Finland)#		440,538		3,041
				80,203
Information Technology — 10.4%
Alibaba Group Holding, ADR (China)*		56,036		4,595
ARM Holdings PLC, ADR (United Kingdom)		98,821		4,259

See Notes to Financial Statements.

106

P N C  I n t e r n a t i o n a l  E q u i t y  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
FOREIGN COMMON STOCKS — continued
Information Technology — continued
Dassault Systemes SA (France)		35,273	$	2,810
Fleetmatics Group PLC (Ireland)*		92,981		3,803
Infosys, ADR (India)		419,260		8,150
Ingenico Group (France)		48,000		5,850
Mobileye NV (Israel)*		93,981		3,568
NCSoft (South Korea)		17,420		3,513
NXP Semiconductors NV (Netherlands)*		55,030		5,200
Samsung Electronics (South Korea)		7,711		8,346
SAP SE, ADR (Germany)#		81,731		6,626
SolarEdge Technologies (Israel)*		136,477		2,982
Tencent Holdings (Hong Kong)		354,040		7,889
Wincor Nixdorf AG (Germany)*		169,758		9,068
Wirecard AG (Germany)		164,082		7,297
				83,956
Materials — 12.3%
BASF SE (Germany)		108,700		8,404
BHP Billiton PLC (United Kingdom)		33,699		397
BHP Billiton PLC, ADR (United Kingdom)#		351,800		8,422
Hexpol AB (Sweden)		352,157		3,552
Imerys SA (France)		114,552		8,077
James Hardie Industries PLC (Australia)		374,556		5,691
LANXESS AG (Germany)		168,400		8,044
Linde AG (Germany)		54,900		8,224
Methanex (Canada)#		287,200		9,448
Randgold Resources, ADR (United Kingdom)#		72,852		6,142
Showa Denko KK (Japan)		7,675,000		7,847
Solvay SA (Belgium)		79,812		8,087
Symrise AG (Germany)		130,030		8,159
Yara International ASA (Norway)		231,500		8,325
				98,819
Telecommunication Services — 4.3%
Deutsche Telekom AG (Germany)		445,761		7,924
Freenet AG (Germany)		267,519		7,379
KDDI (Japan)		361,700		10,493
Magyar Telekom Telecommunications PLC (Hungary)		3,417,128		5,481
Safaricom (Kenya)		21,561,789		3,633
				34,910
Utilities — 0.3%
Red Electrica SA (Spain)		28,251		2,515
				2,515
Total Foreign Common Stocks (Cost $708,459)				749,152
MONEY MARKET FUND — 6.4%
PNC Government Money Market Fund, Class I Shares 0.080%† (D) (E)		51,158,246		51,158
Total Money Market Fund (Cost $51,158)				51,158
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 99.3% (Cost $759,617)				800,310

	Number of Shares		Value (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 6.2%
Affiliated Money Market Fund — 5.5%
PNC Government Money Market Fund, Class I Shares 0.080%† (D)		44,755,281		$44,756
Money Market Fund — 0.7%
Morgan Stanley Institutional Liquidity Funds
Government Portfolio, Institutional Class 0.250% (D)		5,645,257		5,645
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $50,401)‡				50,401
TOTAL INVESTMENTS — 105.5%
(Cost $810,018)**				850,711
Other Assets & Liabilities – (5.5)%				(44,410	)
TOTAL NET ASSETS — 100.0%			$	806,301

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $811,440.

Gross unrealized appreciation (000)	$102,907
Gross unrealized depreciation (000)	(63,636	)
Net unrealized appreciation (000)	$39,271

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $43,611 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) All or a portion of the security has been segregated on the Fund’s books and records for open forward currency contracts.

(B) Security fair valued using methods approved by the Board of Trustees.

(C) Illiquid Security. Total value of illiquid securities is $0 (000) and represents less than 0.1% of net assets as of May 31, 2016.

(D) The rate quoted is the annualized seven-day effective yield of the fund at period end.

(E) All or a portion of the security has been segregated on the Fund’s books and records for open futures contracts.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $5,377 (000) and represents 0.7% of net assets as of May 31, 2016.

See Notes to Financial Statements.

107

Forward Currency Contracts:

Settlement Month	Type			Contracts to Deliver (000)		In Exchange For (000)			Contracts at Value (000)			Unrealized Appreciation/ Depreciation (000)
11/16		Sell	*		JPY    3,385,850		$	28,317		$	30,747		$	(2,430	)
11/16		Buy	*		JPY    3,385,850			28,222			30,747			2,525
													$	95

^*Counterparty is State Street Bank

JPY — Japanese Yen

Assets in the amount of $59,872,891 have been segregated on the Fund’s books and records.

Futures Contracts:

Description	Number of Contracts	Notional Cost Amount (000)	Expiration Date	Unrealized Appreciation (000)
DAX Index Future	10	$2,776	06/17/16	$74

Cash in the amount of $279,309 is held by the broker as collateral to cover initial margin requirements for the above open futures contracts (Long Positions).

Assets in the amount of $3,054,663 have been segregated on the Fund’s books and records.

See Notes to Financial Statements.

108

P N C  I n t e r n a t i o n a l  E q u i t y  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1     Quoted Prices     (000)			Level 2 Other Significant     Observable Inputs     (000)			Level 3 Other Significant     Unobservable Inputs     (000)			Total         Value         (000)
Assets:
Foreign Common Stocks:
Australia		$	–		$	11,617		$	–		$	11,617
Belgium			–			13,827			–			13,827
Bermuda			–			–			–			–
Canada			12,249			–			–			12,249
China			8,170			4,106			–			12,276
Denmark			9,475			14,269			–			23,744
Finland			–			22,425			–			22,425
France			–			44,433			–			44,433
Germany			18,781			97,605			–			116,386
Hong Kong			661			13,855			–			14,516
Hungary			5,481			–			–			5,481
India			14,133			–			–			14,133
Ireland			13,768			7,335			–			21,103
Israel			15,053			–			–			15,053
Italy			–			10,779			–			10,779
Japan			6,868			86,531			–			93,399
Kenya			6,182			–			–			6,182
Netherlands			5,200			9,413			–			14,613
Norway			–			28,218			–			28,218
Philippines			2,483			–			–			2,483
Russia			3,919			–			–			3,919
South Africa			–			8,114			–			8,114
South Korea			–			19,902			–			19,902
Spain			–			13,689			–			13,689
Sweden			5,987			39,589			–			45,576
Switzerland			–			32,549			–			32,549
Thailand			–			17,099			–			17,099
United Kingdom			36,556			88,831			–			125,387
Money Market Fund			51,158			–			–			51,158
Short-Term Investments Purchased with Collateral From Securities Loaned			50,401			–			–			50,401
Total Assets - Investments in Securities		$	266,525		$	584,186		$	–		$	850,711

See Notes to Financial Statements.

109

	Level 1  Quoted Prices  (000)	Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total     Value     (000)
Assets:
Other Financial Instruments
Forward Currency Contracts	$                  –		$	2,525			–		$	2,525
Futures Contracts	74			–			–			74
Total Assets - Other Financial Instruments	$                74 –		$	2,525		$	–		$	2,599

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)	Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total     Value     (000)
Liabilities:
Payable for collateral received for loaned securities	$                  –		$	50,401		$	–		$	50,401
Total Liabilities - Collateral Received for Loaned Securities	$                  –		$	50,401		$	–		$	50,401
Other Financial Instruments
Forward Currency Contracts	$                  –		$	2,430		$	–		$	2,430
Total Liabilities - Other Financial Instruments	$                74		$	2,430		$	–		$	2,430

The Fund held securities valued at $6,808 (000) as of May 31, 2015 that were transferred from Level 1 to Level 2 of the valuation hierarchy during the fiscal year ended May 31, 2016. The common stocks that transferred from Level 1 to Level 2 did so as a result of foreign equities that were being valued based on quoted prices as of May 31, 2015 that are now being fair value adjusted as of May 31, 2016. The value of securities that were transferred to Level 2 as of May 31, 2016 is $6,873 (000). (See Note 2 in Notes to Financial Statements).

The Fund held securities valued at $19,881 (000) as of May 31, 2015 that were transferred from Level 2 to Level 1 of the valuation hierarchy during the fiscal year ended May 31, 2016. The common stocks that transferred from Level 2 to Level 1 did so as a result of foreign equities that were fair value adjusted as of May 31, 2015 that are now being valued based on quoted prices as of May 31, 2016. The value of securities that were transferred to Level 1 as of May 31, 2016 is $13,718 (000). (See Note 2 in Notes to Financial Statements).

See Notes to Financial Statements.

110

P N C  I n t e r n a t i o n a l  E q u i t y  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

At May 31, 2016, country diversification of the Fund was as follows:

Country Diversification	% of Net   Assets			Value      (000)
Foreign Common Stocks
United Kingdom		15.6	%		$	125,387
Germany		14.4				116,386
Japan		11.6				93,399
Sweden		5.7				45,576
France		5.5				44,433
Switzerland		4.0				32,549
Norway		3.5				28,218
Denmark		2.9				23,744
Finland		2.8				22,425
Ireland		2.6				21,103
South Korea		2.5				19,902
Thailand		2.1				17,099
Israel		1.9				15,053
Netherlands		1.8				14,613
Hong Kong		1.8				14,516
India		1.8				14,133
Belgium		1.7				13,827
Spain		1.7				13,689
China		1.5				12,276
Canada		1.5				12,249
Australia		1.4				11,617
Italy		1.3				10,779
South Africa		1.0				8,114
Kenya		0.8				6,182
Hungary		0.7				5,481
Russia		0.5				3,919
Philippines		0.3				2,483
Bermuda		0.0				–	*
Total Foreign Common Stocks		92.9				749,152
Money Market Fund		6.4				51,158
Total Investments Before Collateral for Loaned Securities		99.3				800,310
Short-Term Investments Purchased with Collateral for Loaned Securities		6.2				50,401
Total Investments		105.5				850,711
Other Assets and Liabilities		(5.5	)			(44,410	)
Net Assets		100.0	%		$	806,301

* Amount represents less than 0.1%.

See Notes to Financial Statements.

111

P N C  I n t e r n a t i o n a l  G r o w t h  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value         (000)
FOREIGN COMMON STOCKS — 93.3%
Consumer Discretionary — 13.5%
Bridgestone (Japan)		431		$	15
Compass Group PLC (United Kingdom)		2,242			42
Dufry AG (Switzerland)*		158			21
Industria de Diseno Textil SA (Spain)		1,086			37
Just Eat PLC (United Kingdom)*		6,093			40
lululemon athletica (Canada)*		345			22
LVMH Moet Hennessy Louis Vuitton SE (France)		119			19
Pandora A/S (Denmark)		348			52
Signet Jewelers (United Kingdom)		211			21
Sony, ADR (Japan)		2,063			57
SuperGroup PLC (United Kingdom)		1,174			24
TAL Education Group ADR (China)*		560			30
XXL ASA (Norway) 144A		1,315			16
Zalando SE (Germany)* 144A		993			29
zooplus AG (Germany)*		126			18
					443
Consumer Staples — 11.0%
Anheuser-Busch InBev SA/NV (Belgium)		380			48
Carrefour SA (France)		1,290			35
Davide Campari-Milano SpA (Italy)		3,114			30
Heineken NV (Netherlands)		251			23
Kao (Japan)		573			31
Koninklijke Ahold NV (Netherlands)		2,497			56
Nestle SA (Switzerland)		633			47
Puregold Price Club (Philippines)		23,100			21
Reckitt Benckiser Group PLC (United Kingdom)		736			73
					364
Financials — 14.3%
AIA Group (Hong Kong)		8,504			50
Cerved Information Solutions SpA (Italy)		2,365			20
Daito Trust Construction (Japan)		217			31
Danske Bank A/S (Denmark)		1,399			40
Deutsche Wohnen AG (Germany)		1,420			46
Equity Group Holdings (Kenya)		57,221			22
FinecoBank Banca Fineco SpA (Italy)		1,882			14
HDFC Bank, ADR (India)		778			50
Mitsubishi Estate (Japan)		2,301			44
Mitsui Fudosan (Japan)		1,455			35
Nihon M&A Center (Japan)		584			36
Ping An Insurance Group of China, Cl H (China)		7,659			34
VIB Vermoegen AG (Germany)		1,215			26
Virgin Money Holdings PLC (United Kingdom)		4,471			24
					472
Healthcare — 22.6%
Bayer AG (Germany)		480			46
Clinigen Group PLC (United Kingdom)		3,010			24
CYBERDYNE (Japan)*		2,164			51
GN Store Nord A/S (Denmark)		1,384			28
Grifols SA (Spain)		2,508			57
Hoya (Japan)		1,125			39
ICON PLC (Ireland)*		638			45
M3 (Japan)		1,200			34
Meda AB, Cl A (Sweden)		2,188			39
NMC Health PLC (United Kingdom)		2,887			48
Novo Nordisk A/S, ADR (Denmark)		1,415			79
Ono Pharmaceutical (Japan)		2,026			90
Roche Holding AG (Switzerland)		330			87
Sawai Pharmaceutical (Japan)		362			26

	Number of Shares		Value         (000)
Shire PLC (United Kingdom)		410		$	25
Vitrolife AB (Sweden)		512			26
					744
Industrials — 10.3%
Ashtead Group PLC (United Kingdom)		3,392			48
Geberit AG (Switzerland)		113			43
Hexagon AB, Cl B (Sweden)		762			30
Kingspan Group PLC (Ireland)		1,365			38
Nidec (Japan)		396			30
Rational AG (Germany)		91			43
Schneider Electric SE (France)		246			16
Siemens AG (Germany)		301			33
SMC (Japan)		132			33
Tomra Systems ASA (Norway)		2,301			26
					340
Information Technology — 14.8%
Alibaba Group Holding, ADR (China)*		455			37
ARM Holdings PLC, ADR (United Kingdom)		827			36
Dassault Systemes SA (France)		294			23
Fleetmatics Group PLC (Ireland)*		778			32
Ingenico Group (France)		401			49
Mobileye NV (Israel)*		786			30
NCSoft (South Korea)		142			29
NXP Semiconductors NV (Netherlands)*		470			44
SAP SE, ADR (Germany)		669			54
SolarEdge Technologies (Israel)*		1,141			25
Tencent Holdings (Hong Kong)		2,963			66
Wirecard AG (Germany)		1,372			61
					486
Materials — 3.8%
Hexpol AB (Sweden)		2,947			30
James Hardie Industries PLC (Australia)		3,057			47
Randgold Resources, ADR (United Kingdom)		597			50
					127
Telecommunication Services — 2.4%
Magyar Telekom Telecommunications PLC (Hungary)		29,241			47
Safaricom (Kenya)		189,637			32
					79
Utilities — 0.6%
Red Electrica SA (Spain)		237			21
					21
Total Foreign Common Stocks (Cost $2,827)					3,076
EXCHANGE-TRADED FUND — 0.7%
iShares MSCI Germany ETF†		926			24
Total Exchange-Traded Fund (Cost $22)					24

See Notes to Financial Statements.

112

P N C  I n t e r n a t i o n a l  G r o w t h  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value         (000)
MONEY MARKET FUND — 6.4%
PNC Government Money Market Fund, Class I Shares 0.080%† (A)		209,350			$209
Total Money Market Fund (Cost $209)					209
TOTAL INVESTMENTS — 100.4% (Cost $3,058)**					3,309
Other Assets & Liabilities – (0.4)%					(14	)
TOTAL NET ASSETS — 100.0%				$	3,295

*  Non-income producing security.

**  Aggregate cost for Federal income tax purposes is (000) $3,058.

Gross unrealized appreciation (000)	$276
Gross unrealized depreciation (000)	(25	)
Net unrealized appreciation (000)	$251

†  Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $45 (000) and represents 1.4% of net assets as of May 31, 2016.

See Notes to Financial Statements.

113

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Schedules of Investments).

	Level 1     Quoted Prices     (000)			Level 2 Other Significant     Observable Inputs     (000)			Level 3 Significant     Unobservable Inputs     (000)			Total Value             (000)
Assets:
Exchange-Traded Fund		$	24		$	–		$	–		$	24
Foreign Common Stocks:
Australia			–			47			–			47
Belgium			–			48			–			48
Canada			22			–			–			22
China			67			34			–			101
Denmark			79			120			–			199
France			–			142			–			142
Germany			80			276			–			356
Hong Kong			–			116			–			116
Hungary			47			–			–			47
India			50			–			–			50
Ireland			115			–			–			115
Israel			55			–			–			55
Italy			–			64			–			64
Japan			57			495			–			552
Kenya			54			–			–			54
Netherlands			44			79			–			123
Norway			–			42			–			42
Philippines			21			–			–			21
South Korea			–			29			–			29
Spain			–			115			–			115
Sweden			–			125			–			125
Switzerland			–			198			–			198
United Kingdom			155			300			–			455
Money Market Fund			209			–			–			209
Total Assets - Investments in Securities		$	1,079		$	2,230		$	–		$	3,309

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

114

P N C  I n t e r n a t i o n a l  G r o w  t h  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

At May 31, 2016, country diversification of the Fund was as follows:

Country Diversification	% of Net    Assets			Value     (000)
Foreign Common Stocks
Japan		16.8	%		$   552
United Kingdom		13.8			455
Germany		10.8			356
Denmark		6.0			199
Switzerland		6.0			198
France		4.3			142
Sweden		3.8			125
Netherlands		3.7			123
Hong Kong		3.5			116
Ireland		3.5			115
Spain		3.5			115
China		3.1			101
Italy		1.9			64
Israel		1.7			55
Kenya		1.6			54
India		1.5			50
Belgium		1.5			48
Hungary		1.4			47
Australia		1.4			47
Norway		1.3			42
South Korea		0.9			29
Canada		0.7			22
Philippines		0.6			21
Total Foreign Common Stocks		93.3			3,076
Exchange-Traded Fund		0.7			24
Money Market Fund		6.4			209
Total Investments		100.4			3,309
Other Assets and Liabilities		(0.4	)		(14	)
Net Assets		100.0	%		$3,295

See Notes to Financial Statements.

115

P N C  L a r g e  C a p  C o r e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value   (000)
COMMON STOCKS — 97.4%
Consumer Discretionary — 14.2%
Comcast, Cl A		9,120	$	577
D.R. Horton		9,650		295
Foot Locker		5,330		298
Ford Motor		20,770		280
Home Depot		4,410		583
NIKE, Cl B		6,710		370
O’Reilly Automotive*		1,610		426
Tractor Supply		3,640		350
Walt Disney		5,570		553
Wyndham Worldwide		4,360		294
				4,026
Consumer Staples — 10.3%
Altria Group		8,130		517
Constellation Brands, Cl A		3,780		579
CVS Health		5,440		525
Dr Pepper Snapple Group		5,970		546
Hormel Foods		6,490		223
Kroger		7,050		252
Tyson Foods, Cl A		4,000		255
				2,897
Energy — 5.5%
Exxon Mobil		5,257		468
Schlumberger (Curacao)		6,730		513
TOTAL SA, ADR (France)		11,660		566
				1,547
Financials — 14.0%
BNY Mellon		6,600		278
JPMorgan Chase		12,380		808
Northern Trust		5,770		427
Principal Financial Group		10,230		456
Public Storage REIT		1,540		391
S&P Global		3,850		430
Simon Property Group REIT		1,360		269
Visa, Cl A		4,280		338
Wells Fargo		11,082		562
				3,959
Healthcare — 13.6%
Aetna		2,800		317
Amgen		3,610		570
Cigna		2,130		273
Edwards Lifesciences*		6,640		654
Gilead Sciences		2,800		244
Johnson & Johnson		5,079		573
Pfizer		17,320		601
Thermo Fisher Scientific		2,380		361
Universal Health Services, Cl B		1,960		264
				3,857
Industrials — 12.8%
Alaska Air Group		3,780		251
Cintas		5,240		497
General Dynamics		2,860		406
General Electric		9,344		282
Honeywell International		4,780		544
Illinois Tool Works		3,240		344
Ingersoll-Rand PLC (Ireland)		4,200		281
Lockheed Martin		1,400		331

	Number of Shares		Value   (000)
Northrop Grumman		1,980	$	421
Raytheon		2,040		264
				3,621
Information Technology — 17.1%
Accenture PLC, Cl A (Ireland)		3,010		358
Alphabet, Cl A*		1,089		815
Apple		6,518		651
Check Point Software Technologies (Israel)*#		3,810		324
Cisco Systems		8,050		234
Facebook, Cl A*		6,030		716
Lam Research		4,750		393
Microsoft		5,500		292
TE Connectivity (Switzerland)		6,170		370
Texas Instruments		6,680		405
Vantiv, Cl A*		5,050		272
				4,830
Materials — 4.0%
Celanese, Series A		5,580		393
Dow Chemical		7,510		386
PPG Industries		3,220		347
				1,126
Telecommunication Services — 1.8%
Verizon Communications		9,960		507
Utilities — 4.1%
American Electric Power		4,760		308
American Water Works		4,360		323
WEC Energy Group		8,600		517
				1,148
Total Common Stocks
(Cost $25,032)				27,518
EXCHANGE-TRADED FUND — 1.1%
SPDR® S&P 500® ETF Trust		1,500		315
Total Exchange-Traded Fund
(Cost $315)				315
MONEY MARKET FUND — 1.4%
PNC Government Money Market Fund, Class I Shares 0.080%† (A)		375,306		375
Total Money Market Fund
(Cost $375)				375
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 99.9%
(Cost $25,722)				28,208

See Notes to Financial Statements.

116

P N C  L a r g e  C a p  C o r e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 1.0%
Affiliated Money Market Fund — 0.9%
PNC Government Money Market Fund, Class I Shares 0.080%† (A)		252,217		$252
Money Market Fund — 0.1%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250% (A)		31,814		32
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $284)‡				284
TOTAL INVESTMENTS — 100.9% (Cost $26,006)**				28,492
Other Assets & Liabilities – (0.9)%				(242	)
TOTAL NET ASSETS — 100.0%			$	28,250

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $26,020.

Gross unrealized appreciation (000)	$3,007
Gross unrealized depreciation (000)	(535	)
Net unrealized appreciation (000)	$2,472

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $282 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

117

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value       (000)
Assets:
Common Stocks		$	27,518		$	–		$	–		$	27,518
Exchange-Traded Fund			315			–			–			315
Money Market Fund			375			–			–			375
Short-Term Investments Purchased With Collateral From Securities Loaned			284			–			–			284
Total Assets - Investments in Securities		$	28,492		$	–		$	–		$	28,492
Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:
	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value       (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	284		$	–		$	284
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	284		$	–		$	284

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

118

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S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value   (000)
COMMON STOCKS — 98.0%
Consumer Discretionary — 22.7%
Burlington Stores*		18,100	$	1,092
Carnival (Panama)		25,850		1,234
Comcast, Cl A		26,500		1,677
D.R. Horton		52,800		1,614
Foot Locker		20,760		1,161
Hasbro		17,890		1,562
Home Depot		19,630		2,593
McDonald’s		12,480		1,523
Newell Rubbermaid		19,620		936
NIKE, Cl B		17,150		947
O’Reilly Automotive*		6,000		1,587
Scripps Networks Interactive, Cl A		22,040		1,418
Tractor Supply		13,280		1,276
Walt Disney		20,680		2,052
Wyndham Worldwide		20,430		1,377
				22,049
Consumer Staples — 12.2%
Altria Group		29,940		1,905
Casey’s General Stores		12,610		1,516
Constellation Brands, Cl A		8,050		1,233
CVS Health		12,240		1,181
Dr Pepper Snapple Group		10,110		924
Hormel Foods		31,260		1,076
Kroger		21,430		766
PepsiCo		24,080		2,436
Tyson Foods, Cl A		13,850		883
				11,920
Financials — 3.7%
BNY Mellon		23,370		983
Extra Space Storage REIT		17,300		1,608
FactSet Research Systems		6,160		980
				3,571
Healthcare — 14.3%
Amgen		13,180		2,082
Biogen*		3,910		1,133
Cigna		6,610		847
Edwards Lifesciences*		11,620		1,145
Gilead Sciences		16,670		1,451
Johnson & Johnson		18,210		2,052
Pfizer		30,140		1,046
Quintiles Transnational Holdings*		14,900		1,011
Thermo Fisher Scientific		11,860		1,800
Universal Health Services, Cl B		9,620		1,297
				13,864
Industrials — 13.3%
Alaska Air Group		13,210		877
Carlisle		11,440		1,188
Cintas		15,000		1,422
Equifax		13,240		1,665
General Dynamics		9,700		1,376
Ingersoll-Rand PLC (Ireland)		21,390		1,429
Lockheed Martin		5,040		1,191
Northrop Grumman		6,100		1,297
Raytheon		9,050		1,173
Southwest Airlines		30,900		1,313
				12,931

	Number of Shares		Value   (000)
Information Technology — 25.8%
Accenture PLC, Cl A (Ireland)		13,260	$	1,578
Alphabet, Cl A*		5,040		3,774
Amdocs (Guernsey)		24,400		1,415
Apple		40,536		4,048
Arrow Electronics*		17,130		1,107
CDW		31,750		1,351
Check Point Software Technologies (Israel)*#		18,760		1,594
Facebook, Cl A*		26,700		3,172
Intel		30,640		968
Lam Research		19,100		1,582
Microsoft		31,050		1,646
TE Connectivity (Switzerland)		15,680		941
Texas Instruments		16,340		990
Vantiv, Cl A*		16,840		905
				25,071
Materials — 5.0%
Celanese, Series A		23,190		1,635
Dow Chemical		45,830		2,354
PPG Industries		7,980		859
				4,848
Utilities — 1.0%
NextEra Energy		7,920		951
Total Common Stocks (Cost $87,235)				95,205
EXCHANGE-TRADED FUND — 0.5%
iShares Russell 1000 Growth ETF†		5,000		504
Total Exchange-Traded Fund (Cost $502)				504
MONEY MARKET FUND — 2.0%
PNC Government Money Market Fund, Class I Shares 0.080%† (A) (B)		1,945,606		1,946
Total Money Market Fund (Cost $1,946)				1,946
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 100.5% (Cost $89,683)				97,655

See Notes to Financial Statements.

119

	Number of Shares		Value   (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 1.6%
Affiliated Money Market Fund — 1.4%
PNC Government Money Market Fund, Class I Shares 0.080%† (A)		1,372,466		$1,373
Money Market Fund — 0.2%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250% (A)		173,118		173
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $1,546)‡				1,546
TOTAL INVESTMENTS — 102.1% (Cost $91,229)**				$99,201
Other Assets & Liabilities – (2.1)%				(2,084	)
TOTAL NET ASSETS — 100.0%				$97,117

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $91,293.

Gross unrealized appreciation (000)	$9,442
Gross unrealized depreciation (000)	(1,534	)
Net unrealized appreciation (000)	$7,908

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $1,536 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

(B) All or a portion of the security has been segregated on the Fund’s books and records for open futures contracts.

Futures Contracts:

Description	Number of Contracts	Notional Cost Amount (000)	Expiration Date	Unrealized Appreciation (000)
S&P 500® E-Mini	10	$1,003	06/17/16	$44

 Cash in the amount of $42,000 is held by the broker as collateral to cover initial margin requirements for the above open futures contracts (Long Positions).

Assets in the amount of $1,103,406 have been segregated on the Fund’s books and records.

See Notes to Financial Statements.

120

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S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value     (000)
Assets:
Common Stocks		$	95,205		$	–		$	–		$	95,205
Exchange-Traded Fund			504			–			–			504
Money Market Fund			1,946			–			–			1,946
Short-Term Investments Purchased With Collateral From Securities Loaned			1,546			–			–			1,546
Total Assets - Investments in Securities		$	99,201		$	–		$	–		$	99,201
Other Financial Instruments
Futures Contracts		$	44		$	–		$	–		$	44
Total Assets - Other Financial Instruments		$	44		$	–		$	–		$	44
Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:
	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	1,546		$	–		$	1,546
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	1,546		$	–		$	1,546

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

121

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S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — 97.9%
Consumer Discretionary — 7.3%
Carnival (Panama)		32,480	$	1,551
Comcast, Cl A		21,220		1,343
D.R. Horton		37,600		1,149
Foot Locker		17,250		965
Home Depot		8,330		1,101
Scripps Networks Interactive, Cl A		17,180		1,105
Wyndham Worldwide		15,360		1,035
				8,249
Consumer Staples — 7.7%
Constellation Brands, Cl A		8,200		1,256
CVS Health		24,810		2,393
Hormel Foods		35,380		1,217
Kroger		31,410		1,123
Reynolds American		33,120		1,646
Tyson Foods, Cl A		16,380		1,045
				8,680
Energy — 11.5%
Chevron		19,670		1,987
Exxon Mobil		63,170		5,623
Schlumberger (Curacao)		32,900		2,510
TOTAL SA, ADR (France)		59,580		2,891
				13,011
Financials — 24.7%
AmTrust Financial Services		60,630		1,608
BNY Mellon		41,050		1,727
Cincinnati Financial		23,900		1,651
Discover Financial Services		31,970		1,816
Extra Space Storage REIT		12,600		1,171
JPMorgan Chase		77,170		5,037
Marsh & McLennan		25,720		1,699
Northern Trust		25,110		1,861
Prudential Financial		15,700		1,244
Public Storage REIT		6,000		1,522
S&P Global		11,060		1,237
Simon Property Group REIT		8,600		1,700
SunTrust Banks		39,240		1,720
Wells Fargo		80,530		4,084
				28,077
Healthcare — 10.6%
Aetna		13,630		1,543
Amgen		12,870		2,033
Cigna		8,500		1,089
Johnson & Johnson		24,690		2,782
Mylan NV (Netherlands)*		20,710		898
Pfizer		83,740		2,906
Teva Pharmaceutical Industries, ADR (Israel)		16,030		831
				12,082
Industrials — 11.3%
Alaska Air Group		19,670		1,306
Carlisle		11,900		1,235
Equifax		11,100		1,396
General Dynamics		7,790		1,105
General Electric		37,900		1,146
Honeywell International		15,920		1,812
Illinois Tool Works		10,740		1,139
Northrop Grumman		9,020		1,918

	Number of Shares		Value (000)
Raytheon		13,280	$	1,722
				12,779
Information Technology — 10.2%
Accenture PLC, Cl A (Ireland)		9,830		1,169
Amdocs (Guernsey)		20,220		1,173
CDW		33,490		1,425
Cisco Systems		40,470		1,176
Intel		70,430		2,225
Lam Research		15,360		1,272
Microsoft		16,830		892
TE Connectivity (Switzerland)		17,000		1,020
Texas Instruments		19,390		1,175
				11,527
Materials — 4.3%
Celanese, Series A		15,910		1,121
Dow Chemical		49,300		2,532
PPG Industries		11,770		1,268
				4,921
Telecommunication Services — 2.7%
AT&T		45,980		1,800
Verizon Communications		25,840		1,315
				3,115
Utilities — 7.6%
American Electric Power		27,190		1,760
American Water Works		36,830		2,729
WEC Energy Group		39,360		2,367
Xcel Energy		41,490		1,717
				8,573
Total Common Stocks (Cost $102,045)				111,014
EXCHANGE-TRADED FUND — 1.1%
iShares Russell 1000 Value ETF†		12,500		1,280
Total Exchange-Traded Fund (Cost $1,276)				1,280
MONEY MARKET FUND — 0.8%
PNC Government Money Market Fund, Class I Shares 0.080%†  (A)		914,409		914
Total Money Market Fund (Cost $914)				914
TOTAL INVESTMENTS — 99.8%
(Cost $104,235)**				113,208
Other Assets & Liabilities – 0.2%				248
TOTAL NET ASSETS — 100.0%			$	113,456

See Notes to Financial Statements.

122

P N C  L a r g e  C a p  V a l u e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $104,371.

Gross unrealized appreciation (000)	$	11,246
Gross unrealized depreciation (000)		(2,409	)
Net unrealized appreciation (000)		$8,837

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	111,014		$	–		$	–		$	111,014
Exchange-Traded Fund			1,280			–			–			1,280
Money Market Fund			914			–			–			914
Total Assets - Investments in Securities		$	113,208		$	–		$	–		$	113,208

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

123

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S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — 98.1%
Consumer Discretionary — 22.8%
Advance Auto Parts		1,722	$	265
American Axle & Manufacturing Holdings*		9,547		159
CarMax*#		4,799		257
Dollar Tree*		4,172		378
Gildan Activewear (Canada)		8,104		242
Harman International Industries		1,087		85
HSN		3,067		161
Lithia Motors, Cl A		1,506		124
Madison Square Garden, Cl A*		1,274		213
MSG Networks, Cl A*		3,806		66
Polaris Industries#		1,743		148
				2,098
Consumer Staples — 5.7%
Boston Beer, Cl A*		641		99
Casey’s General Stores		830		100
TreeHouse Foods*		3,420		324
				523
Energy — 1.0%
World Fuel Services		2,096		97
Financials — 32.1%
Affiliated Managers Group*		1,809		314
AmTrust Financial Services		12,703		337
Bank of the Ozarks		8,753		341
CBRE Group, Cl A*		3,148		94
Credit Acceptance*#		1,156		216
Discover Financial Services		3,968		225
Eagle Bancorp*		4,738		244
FactSet Research Systems		890		142
Home BancShares		3,366		148
LegacyTexas Financial Group		6,427		173
National General Holdings		10,229		212
PRA Group*		8,046		221
RLI		4,245		281
				2,948
Healthcare — 2.1%
PAREXEL International*		3,100		195
Industrials — 18.1%
B/E Aerospace		3,187		152
Colfax*		3,324		90
EnerSys		3,197		192
Genesee & Wyoming, Cl A*		1,966		118
Graco		1,075		86
Middleby*		869		108
Norfolk Southern		2,203		185
Snap-on		969		157
TransDigm Group*		1,031		272
United Rentals*		1,098		77
Wabtec		2,913		225
				1,662
Information Technology — 16.3%
Alliance Data Systems*		860		191
Manhattan Associates*		6,157		406
Open Text (Canada)#		3,800		223
OSI Systems*		4,540		242
Trimble Navigation*		7,994		204

	Number of Shares		Value (000)
WEX*		2,546	$	235
				1,501
Total Common Stocks (Cost $7,828)				9,024
MONEY MARKET FUND — 2.1%
PNC Government Money Market Fund, Class I Shares 0.080%†  (A)		194,032		194
Total Money Market Fund (Cost $194)				194
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 100.2% (Cost $8,022)				9,218
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 9.0%
Affiliated Money Market Fund — 8.0%
PNC Government Money Market Fund, Class I Shares 0.080%†  (A)		734,732		735
Money Market Fund — 1.0%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250%  (A)		92,676		92
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $827)‡				827
TOTAL INVESTMENTS — 109.2% (Cost $8,849)**				10,045
Other Assets & Liabilities – (9.2)%				(849	)
TOTAL NET ASSETS — 100.0%				$9,196

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $8,850.

Gross unrealized appreciation (000)	$	1,836
Gross unrealized depreciation (000)		(641	)
Net unrealized appreciation (000)	$	1,195

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $811 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

124

P N C  M i d  C a p  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	9,024		$	–		$	–		$	9,024
Money Market Fund			194			–			–			194
Short-Term Investments Purchased With Collateral From Securities Loaned			827			–			–			827
Total Assets - Investments in Securities		$	10,045		$	–		$	–		$	10,045

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	827		$	–		$	827
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	827		$	–		$	827

 There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

125

P N C  M i d  C a p  I n d e x  F u n d

C O N D E N S E D  S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)			Percentage of Net Assets†
COMMON STOCKS — 96.9%
Consumer Discretionary — 11.6%
Domino’s Pizza		203		$	25		0.5%
NVR*		14			24		0.4%
Other Securities		20,207			568		10.7%
					617		11.6%
Consumer Staples — 4.2%
Ingredion		250			29		0.5%
WhiteWave Foods*		612			27		0.5%
Other Securities		5,273			168		3.2%
					224		4.2%
Energy — 2.8%
HollyFrontier		921			25		0.5%
Other Securities		5,995			124		2.3%
					149		2.8%
Financials — 26.3%
Alexandria Real Estate Equities REIT		261			25		0.5%
Alleghany*		56			31		0.6%
Arthur J Gallagher		608			29		0.5%
Camden Property Trust REIT		318			27		0.5%
Duke Realty REIT		1,216			29		0.5%
Everest Re Group (Bermuda)		177			32		0.6%
FactSet Research Systems		158			25		0.5%
Mid-America Apartment Communities REIT		280			29		0.5%
MSCI		324			26		0.5%
National Retail Properties REIT		545			25		0.5%
New York Community Bancorp		1,937			30		0.6%
Raymond James Financial		453			25		0.5%
Regency Centers REIT		361			28		0.5%
Reinsurance Group of America		244			24		0.4%
SEI Investments		501			26		0.5%
Signature Bank*		206			28		0.5%
Other Securities		31,960			962		18.1%
					1,401		26.3%
Healthcare — 8.3%
Cooper		173			28		0.5%
IDEXX Laboratories*		302			26		0.5%
MEDNAX*		373			26		0.5%
Mettler-Toledo International*		96			36		0.7%
ResMed		542			32		0.6%
STERIS PLC (United Kingdom)		341			24		0.4%
Other Securities		5,047			271		5.1%
					443		8.3%
Industrials — 14.6%
Carlisle		230			24		0.5%
Fortune Brands Home & Security		573			34		0.6%
Huntington Ingalls Industries		164			25		0.5%
IDEX		284			24		0.4%
JetBlue Airways*		1,469			26		0.5%
Wabtec		357			28		0.5%
Waste Connections		448			29		0.6%
Other Securities		12,078			584		11.0%
					774		14.6%

	Number of Shares		Value (000)			Percentage of Net Assets†
Information Technology — 16.1%
ANSYS*		347		$	31		0.6%
Broadridge Financial Solutions		413			26		0.5%
Cadence Design Systems*		1,041			26		0.5%
CDK Global		524			29		0.5%
Gartner*		277			28		0.5%
Jack Henry & Associates		299			25		0.5%
Synopsys*		545			28		0.5%
Other Securities		20,732			665		12.5%
					858		16.1%
Materials — 6.9%
Albemarle		321			25		0.5%
Ashland		228			26		0.5%
Valspar		225			25		0.4%
Other Securities		6,203			291		5.5%
					367		6.9%
Telecommunication Services — 0.2%
Other Securities		354			10		0.2%
Utilities — 5.9%
Alliant Energy		853			32		0.6%
Atmos Energy		390			28		0.6%
UGI		597			26		0.5%
Westar Energy		493			28		0.5%
Other Securities		5,380			197		3.7%
					311		5.9%
Total Common Stocks (Cost $4,690)					5,154		96.9%
EXCHANGE-TRADED FUND — 1.2%
SPDR® S&P MidCap 400® ETF Trust (USA)		226			62		1.2%
Total Exchange-Traded Fund (Cost $62)					62		1.2%
MONEY MARKET FUND — 1.7%
PNC Government Money Market Fund, Class I Shares 0.080%††(A)		91,299			91		1.7%
Total Money Market Fund (Cost $91)					91		1.7%
TOTAL INVESTMENTS — 99.8%
(Cost $4,843)**					5,307		99.8%
Other Assets & Liabilities					9		0.2%
TOTAL NET ASSETS				$	5,316		100.0%

See Notes to Financial Statements.

126

P N C  M i d  C a p  I n d e x  F u n d

C O N D E N S E D  S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $5,032.

Gross unrealized appreciation (000)	$596
Gross unrealized depreciation (000)	(321	)
Net unrealized appreciation (000)	$275

† “Other Securities” are those securities that are not among the top 50 holdings of the Fund or do not represent more than 1.0% of the net assets of the Fund or an investment in an affiliate. Some of the individual securities within this category may include non-income producing securities.

†† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

The Condensed Schedule of Investments does not reflect the complete portfolio holdings of the Fund. It includes the Fund’s largest 50 holdings and each investment of any issuer that exceeds 1% of the Fund’s net assets. “Other Securities” represent all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). The complete Schedule of Investments is available (i) without charge, upon request, by calling (800) 607-2200; and (ii) on the SEC’s website at http://www.sec.gov.

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total       Value       (000)
Assets:
Common Stocks		$	5,154		$	–		$	–		$	5,154
Exchange-Traded Fund			62			–			–			62
Money Market Fund			91			–			–			91
Total Assets - Investments in Securities		$	5,307		$	–		$	–		$	5,307

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

127

P N C  M u l t i-F a c t o r  S m a l l  C a p  C o r e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number		Value
	of Shares		(000)
COMMON STOCKS — 96.8%
Consumer Discretionary — 11.8%
Bloomin’ Brands		58,976	$	1,123
Bright Horizons Family Solutions*		31,742		2,057
Cavco Industries*		24,649		2,448
Cheesecake Factory		15,103		753
Churchill Downs		18,419		2,312
Gannett		142,180		2,221
Helen of Troy (Bermuda)*		13,756		1,415
NACCO Industries, Cl A		25,721		1,351
Papa John’s International		16,107		1,020
Pool		30,825		2,823
Sonic		37,677		1,122
Standard Motor Products		48,700		1,882
Wolverine World Wide		65,262		1,188
				21,715
Consumer Staples — 2.8%
Fresh Del Monte Produce (Cayman Islands)		33,588		1,759
Ingles Markets, Cl A		33,664		1,255
SpartanNash		42,812		1,272
TreeHouse Foods*		8,071		764
				5,050
Energy — 2.3%
Baytex Energy (Canada)		469,888		2,298
DHT Holdings (Marshall Islands)		160,306		875
Par Pacific Holdings*		73,140		1,119
				4,292
Financials — 24.6%
Agree Realty REIT		55,850		2,378
Allied World Assurance Company Holdings AG (Switzerland)		22,208		823
American Assets Trust REIT		27,465		1,099
Argo Group International Holdings (Bermuda)		46,303		2,438
Banco Macro SA, ADR (Argentina)		29,444		1,840
Banner		20,937		932
Capital Bank Financial, Cl A		80,984		2,498
Care Capital Properties REIT		28,365		737
CenterState Banks		124,039		1,962
Employers Holdings		73,957		2,208
Essent Group (Bermuda)*		40,592		887
FBL Financial Group, Cl A		24,052		1,513
Fidelity Southern		74,588		1,220
First Financial Bancorp		105,942		2,094
First Merchants		40,835		1,058
First Midwest Bancorp		45,597		853
FirstService (Canada)		39,367		1,861
KCG Holdings, Cl A*		178,529		2,512
Mercantile Bank		72,157		1,764
Opus Bank		21,027		792
Post Properties REIT		16,119		976
PS Business Parks REIT		18,904		1,866
Ryman Hospitality Properties REIT		28,363		1,392
South State		43,983		3,188
Summit Hotel Properties REIT		84,619		990
Sun Communities REIT		30,306		2,116
Wilshire Bancorp		160,431		1,834
WSFS Financial		40,404		1,433
				45,264

	Number		Value
	of Shares		(000)
Healthcare — 13.5%
Amsurg*		17,983	$	1,345
ANI Pharmaceuticals*#		41,056		2,223
BioSpecifics Technologies*		51,042		1,916
Cantel Medical		40,271		2,675
Concordia Healthcare (Canada)#		69,233		2,134
Dyax* (A) (B)		51,786		58
Flamel Technologies SA, ADR (France)*		207,835		2,211
Horizon Pharma PLC (Ireland)*		70,531		1,215
ICON PLC (Ireland)*		35,641		2,511
INC Research Holdings, Cl A*		18,761		816
Ironwood Pharmaceuticals*		93,475		1,168
Molina Healthcare*		26,893		1,302
Natus Medical*		34,427		1,113
Neurocrine Biosciences*		19,656		976
PAREXEL International*		17,756		1,117
U.S. Physical Therapy		34,780		2,009
				24,789
Industrials — 15.9%
AECOM*		46,845		1,504
American Woodmark*		15,810		1,277
Comfort Systems USA		65,208		2,087
Curtiss-Wright		20,782		1,729
Douglas Dynamics		45,353		985
EnerSys		31,753		1,909
Ennis		89,192		1,629
Federal Signal		117,410		1,528
General Cable		51,036		697
Hawaiian Holdings*		37,359		1,512
Multi-Color		26,405		1,646
National Presto Industries#		22,362		1,999
Novanta (Canada)*		142,091		2,175
Toro		32,812		2,930
Universal Forest Products		42,525		3,570
Wabash National*		147,611		2,093
				29,270
Information Technology — 16.2%
Aspen Technology*		54,081		2,061
CACI International, Cl A*		15,015		1,513
CoreLogic*		60,700		2,262
Euronet Worldwide*		17,115		1,366
EVERTEC (Puerto Rico)		160,431		2,456
ExlService Holdings*		34,284		1,776
Fleetmatics Group PLC (Ireland)*		30,040		1,229
Manhattan Associates*		19,600		1,292
Mellanox Technologies (Israel)*		54,966		2,605
Microsemi*		79,250		2,681
Net 1 UEPS Technologies*		96,009		1,055
Sanmina*		36,195		970
Silicon Laboratories*		38,647		1,923
Synaptics*		27,941		1,895
Take-Two Interactive Software*		42,524		1,655
Tech Data*		26,173		1,978
Tyler Technologies*		6,554		1,005
				29,722
Materials — 6.7%
AEP Industries		32,924		1,976
Graphic Packaging Holding		68,346		916
Innophos Holdings		76,841		2,946

See Notes to Financial Statements.

128

P N C  M u l t i - F a c t o r  S m a l l  C a p  C o r e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Materials — continued
Minerals Technologies		20,915	$	1,205
Neenah Paper		18,351		1,273
PolyOne		35,687		1,337
Sonoco Products		54,325		2,590
				12,243
Telecommunication Services — 0.6%
8x8*		91,547		1,169
Utilities — 2.4%
American States Water		57,640		2,251
WGL Holdings		32,891		2,146
				4,397
Total Common Stocks (Cost $163,110)				177,911
MASTER LIMITED PARTNERSHIPS — 1.7%
Energy — 1.1%
Shell Midstream Partners LP		22,915		773
Valero Energy Partners LP		29,394		1,360
				2,133
Financials — 0.6%
Ares Management LP#		73,825		1,041
Total Master Limited Partnerships (Cost $3,419)				3,174

	Number of Shares		Value (000)
MONEY MARKET FUND — 1.5%
PNC Government Money Market Fund, Class I Shares 0.080%† (C)		2,757,166	$	2,757
Total Money Market Fund (Cost $2,757)				2,757
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 100.0% (Cost $169,286)				183,842
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 2.9%
Affiliated Money Market Fund — 2.6%
PNC Government Money Market Fund, Class I Shares 0.080%† (C)		4,787,921		4,788
Money Market Fund — 0.3%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250% (C)		603,930		604
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $5,392)‡				5,392
TOTAL INVESTMENTS — 102.9% (Cost $174,678)**				189,234
Other Assets & Liabilities – (2.9)%				(5,348	)
TOTAL NET ASSETS — 100.0%			$	183,886

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $175,518.

Gross unrealized appreciation (000)	$18,886
Gross unrealized depreciation (000)	(5,170	)
Net unrealized appreciation (000)	$13,716

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $5,233 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Security fair valued using methods approved by the Board of Trustees.

(B) Illiquid Security. Total value of illiquid securities is $58 (000) and represents less than 0.1% of net assets as of May 31, 2016.

(C) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

129

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	177,853		$	–		$	58		$	177,911
Master Limited Partnerships			3,174			–			–			3,174
Money Market Fund			2,757			–			–			2,757
Short-Term Investments Purchased With Collateral From Securities Loaned			5,392			–			–			5,392
Total Assets - Investments in Securities		$	189,176		$	–		$	58		$	189,234
Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:
	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	5,392		$	–		$	5,392
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	5,392		$	–		$	5,392

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

130

P N C  M u l t i - F a c t o r   S m a l l  C a p  G r o w t h  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value   (000)
COMMON STOCKS — 98.1%
Consumer Discretionary — 15.9%
American Axle & Manufacturing Holdings*		54,167	$	903
Bright Horizons Family Solutions*		17,388		1,126
Brinker International		8,615		387
Cato, Cl A		10,865		411
Cavco Industries*		9,614		955
Churchill Downs		6,596		828
Cooper Tire & Rubber		13,484		433
Cracker Barrel Old Country Store#		3,110		471
Denny’s*		71,535		768
Francesca’s Holdings*		48,241		503
Gentherm*		13,887		508
GNC Holdings, Cl A		30,467		794
Grand Canyon Education*		18,017		752
Helen of Troy (Bermuda)*		12,095		1,244
Iconix Brand Group*#		108,953		840
NACCO Industries, Cl A		17,013		894
Pool		12,252		1,122
Thor Industries		10,707		696
Vail Resorts		7,199		945
ZAGG*		81,361		394
				14,974
Consumer Staples — 3.0%
Fresh Del Monte Produce (Cayman Islands)		26,333		1,379
J&J Snack Foods		3,866		408
Pinnacle Foods		23,497		990
				2,777
Financials — 10.4%
BNC Bancorp		33,495		798
Capital Bank Financial, Cl A		28,696		885
Cardinal Financial		26,801		608
Employers Holdings		27,293		815
First Commonwealth Financial		46,386		435
Heritage Financial		52,880		966
Horace Mann Educators		17,205		586
Maiden Holdings (Bermuda)		96,832		1,270
MarketAxess Holdings		2,703		378
Morningstar		11,272		952
Navigators Group*		9,745		888
Old National Bancorp		49,680		654
Sovran Self Storage REIT		4,829		523
				9,758
Healthcare — 21.9%
ABIOMED*		3,903		388
Amsurg*		10,989		822
Anacor Pharmaceuticals*		4,762		473
BioSpecifics Technologies*		18,549		696
Cantel Medical		22,116		1,469
Chemed		7,000		913
Concert Pharmaceuticals*		26,854		357
Dyax*   (A)   (B)		28,169		31
Eagle Pharmaceutical*#		6,689		318
Flamel Technologies SA, ADR (France)*		81,982		872
Globus Medical, Cl A*		28,116		682
HealthSouth		23,222		936
ICON PLC (Ireland)*		15,575		1,097
INC Research Holdings, Cl A*		22,444		977
Intra-Cellular Therapies*		26,311		1,018
LifePoint Health*		9,094		603

	Number of Shares		Value   (000)
Ligand Pharmaceuticals*		9,182	$	1,098
Medidata Solutions*		12,492		574
Molina Healthcare*		21,898		1,060
Momenta Pharmaceuticals*		91,139		1,074
Neurocrine Biosciences*		22,347		1,110
Omnicell*		33,913		1,097
PAREXEL International*		9,378		590
Prestige Brands Holdings*		7,402		400
Team Health Holdings*		10,028		481
Teleflex		2,341		377
West Pharmaceutical Services		7,782		584
Xencor*		35,310		499
				20,596
Industrials — 15.6%
Actuant, Cl A		28,581		780
AZZ		9,812		579
Comfort Systems USA		42,035		1,345
Curtiss-Wright		12,296		1,023
Douglas Dynamics		22,634		492
Dycom Industries*		8,397		713
Federal Signal		63,886		831
Global Brass & Copper Holdings		28,464		777
Healthcare Services Group		24,207		944
John Bean Technologies		28,252		1,714
Matthews International, Cl A		28,504		1,564
Mueller Industries		30,684		954
Multi-Color		8,832		551
National Presto Industries#		9,539		853
Patrick Industries*		9,793		523
Teledyne Technologies*		4,280		420
Toro		6,203		554
				14,617
Information Technology — 23.3%
Aspen Technology*		25,184		960
Cardtronics*		27,865		1,095
ChipMOS TECHNOLOGIES Bermuda		57,510		1,085
Cray*		14,337		478
Euronet Worldwide*		17,471		1,394
EVERTEC (Puerto Rico)		64,839		993
ExlService Holdings*		28,155		1,458
Fair Isaac		11,775		1,312
Guidewire Software*		6,710		394
Ingram Micro, Cl A		26,718		925
Integrated Device Technology*		28,499		666
j2 Global		10,472		701
Jabil Circuit		26,711		510
LogMeIn*		5,527		339
Luxoft Holding (British Virgin Islands)*		8,922		579
Manhattan Associates*		18,160		1,197
Methode Electronics		17,095		505
Microsemi*		49,007		1,658
RingCentral, Cl A*		31,646		625
Sapiens International NV (Curacao)		62,863		764
SS&C Technologies Holdings		6,160		379
Synaptics*		9,774		663
Syntel*		18,926		872
Teradyne		55,546		1,100
Tyler Technologies*		2,461		377
Virtusa*		24,513		864
				21,893

See Notes to Financial Statements.

131

	Number of Shares		Value   (000)
COMMON STOCKS — continued
Materials — 7.0%
AEP Industries		8,457	$	507
AptarGroup		12,250		946
Graphic Packaging Holding		40,503		543
Innophos Holdings		30,982		1,188
Innospec		22,421		1,089
Neenah Paper		21,044		1,460
U.S. Concrete*		12,955		831
				6,564
Telecommunication Services — 1.0%
General Communication, Cl A*		58,764		916
Total Common Stocks (Cost $82,768)				92,095
MASTER LIMITED PARTNERSHIP — 1.1%
Energy — 1.1%
Shell Midstream Partners LP		30,834		1,041
Total Master Limited Partnership (Cost $1,007)				1,041
MONEY MARKET FUND — 2.6%
PNC Government Money Market Fund, Class I Shares 0.080%†  (C)		2,384,976		2,385
Total Money Market Fund (Cost $2,385)				2,385
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 101.8% (Cost $86,160)				95,521

	Number of Shares		Value   (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 2.6%
Affiliated Money Market Fund — 2.3%
PNC Government Money Market Fund, Class I Shares 0.080%†  (C)		2,183,484		$2,184
Money Market Fund — 0.3%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250%  (C)		275,416		275
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $2,459)‡				2,459
TOTAL INVESTMENTS — 104.4% (Cost $88,619)**				97,980
Other Assets & Liabilities – (4.4)%				(4,134	)
TOTAL NET ASSETS — 100.0%			$	93,846

*  Non-income producing security.

**  Aggregate cost for Federal income tax purposes is (000) $89,036.

Gross unrealized appreciation (000)	$13,040
Gross unrealized depreciation (000)	(4,096	)
Net unrealized appreciation (000)	$8,944

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $2,414 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Security fair valued using methods approved by the Board of Trustees.

(B) Illiquid Security. Total value of illiquid securities is $31 (000) and represents less than 0.1% of net assets as of May 31, 2016.

(C) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

132

P N C  M u l t i - F a c t o r  S m a l l  C a p  G r o w t h  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	92,064		$	–		$	31		$	92,095
Master Limited Partnership			1,041			–			–			1,041
Money Market Fund			2,385			–			–			2,385
Short-Term Investments Purchased With Collateral From Securities Loaned			2,459			–			–			2,459
Total Assets - Investments in Securities		$	97,949		$	–		$	31		$	97,980

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	2,459		$	–		$	2,459
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	2,459		$	–		$	2,459

 There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

133

P N C  M u l t i - F a c t o r  S m a l l  C a p  V a l u e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — 95.3%
Consumer Discretionary — 6.9%
American Axle & Manufacturing Holdings*		27,048	$	451
Cooper-Standard Holding*		1,562		134
LGI Homes*		3,943		107
Lithia Motors, Cl A		1,913		157
Monro Muffler Brake		1,992		125
Outerwall#		3,216		133
Pool		2,987		273
Smith & Wesson Holding*		4,789		117
Starz, Cl A*		6,330		171
Steven Madden*		4,666		160
				1,828
Consumer Staples — 3.4%
B&G Foods		9,167		394
SpartanNash		9,985		297
Universal		3,602		197
				888
Energy — 3.3%
Cosan, Cl A (Bermuda)		18,397		100
Hallador Energy#		41,482		177
Nordic American Tankers (Bermuda)#		38,611		593
				870
Financials — 43.2%
American Capital Mortgage Investment REIT		11,544		183
Ares Commercial Real Estate REIT		42,247		506
Banco Latinoamericano de Comercio Exterior SA, Cl E (Panama)		21,506		574
BankFinancial		10,543		134
BB&T		7,244		263
BBCN Bancorp		16,095		262
Brookline Bancorp		21,822		254
Camden National		2,710		117
Cardinal Financial		23,434		532
Citizens & Northern		17,334		351
CNO Financial Group		11,219		228
Community Bank System		4,309		178
CoreSite Realty REIT		8,430		639
CYS Investments REIT		48,469		396
Dime Community Bancshares		27,066		497
DuPont Fabros Technology REIT		13,819		585
Dynex Capital REIT		38,351		257
EMC Insurance Group		4,566		122
Fidelity Southern		8,748		143
First Commonwealth Financial		29,453		277
FirstMerit		8,243		187
FNB		9,504		127
Fox Chase Bancorp		9,876		200
Fulton Financial		25,193		359
Heartland Financial USA		4,962		174
Home BancShares		3,879		170
Horace Mann Educators		6,406		218
Lakeland Bancorp		10,672		123
Lakeland Financial		6,305		309
Maiden Holdings (Bermuda)		38,608		506
Monmouth Real Estate Investment REIT		21,004		250
ProAssurance		3,612		190
Prospect Capital#		70,427		529
S&T Bancorp		6,300		163
Stonegate Bank		3,621		116

	Number of Shares		Value (000)
Summit Hotel Properties REIT		46,414	$	543
Territorial Bancorp		9,629		253
Umpqua Holdings		7,989		128
Waterstone Financial		13,843		200
Wintrust Financial		2,725		145
				11,388
Healthcare — 3.9%
Cambrex*		2,372		116
INC Research Holdings, Cl A*		2,800		122
Landauer		4,558		181
Meridian Bioscience		9,499		185
MiMedx Group*#		19,008		149
Supernus Pharmaceuticals*		14,131		276
				1,029
Industrials — 12.3%
AAR		21,499		525
American Railcar Industries#		12,335		489
Barrett Business Services		4,205		157
Comfort Systems USA		5,515		177
EMCOR Group		5,082		242
Ennis		13,755		251
General Cable		15,635		214
Global Brass & Copper Holdings		9,835		268
National Presto Industries#		1,528		137
Navigant Consulting*		13,314		212
Ritchie Bros. Auctioneers (Canada)#		6,065		198
RPX*		14,799		149
Viad		7,268		231
				3,250
Information Technology — 12.3%
AVG Technologies NV (Netherlands)*		5,716		110
Bel Fuse, Cl B		13,692		247
Benchmark Electronics*		8,688		180
Canadian Solar (Canada)*#		18,070		337
EVERTEC (Puerto Rico)		10,698		164
ManTech International, Cl A		4,036		145
Net 1 UEPS Technologies*		26,026		286
PC Connection		6,462		149
Plexus*		5,547		244
Polycom*		16,697		200
Sanmina*		20,448		548
Tech Data*		3,360		254
Tessera Technologies		4,853		157
Xcerra*		31,696		207
				3,228
Materials — 2.7%
Braskem SA, ADR (Brazil)#		24,541		285
Chase		2,563		150
Olympic Steel		11,764		279
				714
Telecommunication Services — 0.4%
Consolidated Communications Holdings		4,353		107
Utilities — 6.9%
El Paso Electric		4,950		221
Empresa Distribuidora Y Comercializadora Norte SA, ADR (Argentina)*		21,777		327

See Notes to Financial Statements.

134

P N C  M u l t i - F a c t o r  S m a l l  C a p  V a l u e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Utilities — continued
NorthWestern		6,894	$	400
Otter Tail		8,504		251
Piedmont Natural Gas		4,324		260
Spire		2,968		189
Unitil		4,263		169
				1,817
Total Common Stocks (Cost $24,192)				25,119
MASTER LIMITED PARTNERSHIPS — 2.9%
Energy — 1.5%
Holly Energy Partners LP		11,702		388
Financials — 1.4%
Carlyle Group LP		23,157		371
Total Master Limited Partnerships (Cost $1,001)				759
MONEY MARKET FUND — 2.0%
PNC Government Money Market Fund, Class I Shares 0.080%†  (A)		526,929		527
Total Money Market Fund (Cost $527)				527
Total Investments Before Short-Term Investments Purchased with Collateral from Securities Loaned – 100.2% (Cost $25,720)				26,405

	Number of Shares		Value (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 10.2%
Affiliated Money Market Fund — 9.1%
PNC Government Money Market Fund, Class I Shares 0.080%†  (A)		2,383,679		$2,384
Money Market Fund — 1.1%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250%  (A)		300,668		300
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $2,684)‡				2,684
TOTAL INVESTMENTS — 110.4%
(Cost $28,404)**				29,089
Other Assets & Liabilities – (10.4)%				(2,746	)
TOTAL NET ASSETS — 100.0%				$26,343

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $28,497.

Gross unrealized appreciation (000)	$2,152
Gross unrealized depreciation (000)	(1,560	)
Net unrealized appreciation (000)	$592

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $2,641 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

135

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	25,119		$	–		$	–		$	25,119
Master Limited Partnerships			759			–			–			759
Money Market Fund			527			–			–			527
Short-Term Investments Purchased With Collateral From Securities Loaned			2,684			–			–			2,684
Total Assets - Investments in Securities		$	29,089		$	–		$	–		$	29,089

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	2,684		$	–		$	2,684
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	2,684		$	–		$	2,684

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

136

P N C  S & P  5 0 0  I n d e x  F u n d

C O N D E N S E D  S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)			Percentage     of Net     Assets†
COMMON STOCKS — 98.6%
Consumer Discretionary — 12.6%
Amazon.com*		3,685		$	2,663		1.6%
Comcast, Cl A		22,255			1,409		0.8%
Home Depot		11,718			1,548		0.9%
McDonald’s		8,444			1,031		0.6%
Starbucks		13,623			748		0.5%
Walt Disney		13,795			1,369		0.8%
Other Securities		248,149			12,710		7.4%
					21,478		12.6%
Consumer Staples — 10.0%
Altria Group		18,031			1,147		0.7%
Coca-Cola		35,996			1,605		0.9%
CVS Health		10,183			982		0.6%
PepsiCo		13,255			1,341		0.8%
Philip Morris International		14,248			1,406		0.8%
Procter & Gamble		24,245			1,965		1.2%
Wal-Mart Stores		14,476			1,025		0.6%
Other Securities		111,939			7,578		4.4%
					17,049		10.0%
Energy — 6.9%
Chevron		17,308			1,748		1.0%
Exxon Mobil		38,051			3,388		2.0%
Schlumberger (Curacao)		12,767			974		0.6%
Other Securities		141,106			5,728		3.3%
					11,838		6.9%
Financials — 16.9%
Bank of America		95,757			1,416		0.8%
Berkshire Hathaway, Cl B*		17,107			2,404		1.4%
BlackRock††		1,341			488		0.3%
Citigroup		27,396			1,276		0.7%
JPMorgan Chase		34,228			2,234		1.3%
PNC Financial Services Group††		5,751			516		0.3%
Visa, Cl A		17,658			1,394		0.8%
Wells Fargo		42,746			2,168		1.3%
Other Securities		320,697			17,027		10.0%
					28,923		16.9%
Healthcare — 14.5%
AbbVie		15,248			960		0.6%
Allergan PLC (Ireland)*		3,625			855		0.5%
Amgen		7,020			1,109		0.6%
Bristol-Myers Squibb		15,819			1,134		0.7%
Celgene*		7,250			765		0.4%
Gilead Sciences		12,817			1,116		0.7%
Johnson & Johnson		25,819			2,909		1.7%
Medtronic PLC (Ireland)		13,274			1,068		0.6%
Merck		26,012			1,463		0.9%
Pfizer		55,666			1,932		1.1%
UnitedHealth Group		8,766			1,172		0.7%
Other Securities		124,961			10,330		6.0%
					24,813		14.5%
Industrials — 9.9%
3M		5,596			942		0.5%
Boeing		5,763			727		0.4%
General Electric		84,550			2,556		1.5%
Honeywell International		7,038			801		0.5%

	Number of Shares		Value (000)			Percentage     of Net     Assets†
Other Securities		159,603		$	11,928		7.0%
					16,954		9.9%
Information Technology — 19.3%
Alphabet, Cl A*		2,716			2,034		1.2%
Alphabet, Cl C*		2,757			2,028		1.2%
Apple		51,641			5,157		3.0%
Cisco Systems		46,681			1,356		0.8%
Facebook, Cl A*		21,563			2,562		1.5%
Intel		43,857			1,385		0.8%
International Business Machines		8,095			1,245		0.7%
MasterCard, Cl A		9,097			872		0.5%
Microsoft		73,131			3,876		2.3%
Oracle		29,019			1,167		0.7%
QUALCOMM		13,823			759		0.4%
Other Securities		244,792			10,523		6.2%
					32,964		19.3%
Materials — 2.7%
Other Securities		86,764			4,714		2.7%
Telecommunication Services — 2.6%
AT&T		56,576			2,215		1.3%
Verizon Communications		37,419			1,905		1.1%
Other Securities		16,694			317		0.2%
					4,437		2.6%
Utilities — 3.2%
Other Securities		102,965			5,460		3.2%
Total Common Stocks
(Cost $77,530)					168,630		98.6%
MONEY MARKET FUND — 1.2%
PNC Government Money Market Fund, Class I Shares 0.080%††(A)(B)		1,963,624			1,964		1.2%
Total Money Market Fund
(Cost $1,964)					1,964		1.2%

Total Investments Before Short-Term Investments Purchased with
Collateral from Securities Loaned – 99.8%
(Cost $79,494)	170,594	99.8%

See Notes to Financial Statements.

137

	Number of Shares		Value (000)			Percentage     of Net     Assets†
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 0.4%
Affiliated Money Market Fund — 0.3%
PNC Government Money Market Fund, Class I Shares 0.080%††(A)		575,136	$	575			0.3%
Money Market Fund — 0.1%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250% (A)		72,545		73			0.1%
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $648)‡				648			0.4%
TOTAL INVESTMENTS — 100.2%
(Cost $80,142)**				171,242			100.2%
Other Assets & Liabilities				(285	)		(0.2)%
TOTAL NET ASSETS			$	170,957			100.0%

*  Non-income producing security.

**   Aggregate cost for Federal income tax purposes is (000) $85,833.

Gross unrealized appreciation (000)	$92,976
Gross unrealized depreciation (000)	(7,567)
Net unrealized appreciation (000)	$85,409

† “Other Securities” are those securities that are not among the top 50 holdings of the Fund or do not represent more than 1.0% of the net assets of  the Fund or an investment in an affiliate. Some of the individual securities within this category may include securities fully or partially on loan and/or non-income producing securities. Total Value of Securities on Loan is $635 (000).

††   Affiliated Holding. See Note 3 in Notes to Financial Statements.

‡ See Note 9 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

(B) All or a portion of the security has been segregated on the Fund’s books and records for open futures contracts.

Futures Contracts:

Description	Number of Contracts		Notional Cost Amount (000)			Expiration Date		Unrealized Appreciation (000)
S&P 500® E-mini		10		$	1,003		06/17/16		$	44

 Cash in the amount of $42,000 is held by the broker as collateral to cover initial margin requirements for the above open futures contracts (Long Positions).

Assets in the amount of $1,103,434 have been segregated on the Fund’s books and records.

The Condensed Schedule of Investments does not reflect the complete portfolio holdings of the Fund. It includes the Fund’s largest 50 holdings, each investment of any issuer that exceeds 1% of the Fund’s net assets and investments in affiliates. “Other Securities” represent all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). The complete Schedule of Investments is available (i) without charge, upon request, by calling 1-800-622-FUND (3863); and (ii) on the SEC’s website at http://www.sec.gov.

See Notes to Financial Statements.

138

P N C  S & P  5 0 0  I n d e x  F u n d

C O N D E N S E D  S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	168,630		$	–		$	–		$	168,630
Money Market Fund			1,964			–			–			1,964
Short-Term Investments Purchased With Collateral From Securities Loaned			648			–			–			648
Total Assets - Investments in Securities		$	171,242		$	–		$	–		$	171,242
Other Financial Instruments
Futures Contracts		$	44		$	–		$	–		$	44
Total Assets - Other Financial Instruments		$	44		$	–		$	–		$	44

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	648		$	–		$	648
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	648		$	–		$	648

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

139

P N C  S m a l l  C a p  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — 96.0%
Consumer Discretionary — 19.8%
American Axle & Manufacturing Holdings*		852,103		$	14,205
Asbury Automotive Group*		151,151			8,480
Dorman Products*#		556,813			30,742
Drew Industries		443,191			34,285
Helen of Troy (Bermuda)*		202,988			20,873
HSN		406,354			21,281
Lithia Motors, Cl A		402,443			33,137
Madison Square Garden, Cl A*		150,611			25,232
Monro Muffler Brake		471,729			29,695
MSG Networks, Cl A*		451,833			7,821
					225,751
Consumer Staples — 2.2%
Boston Beer, Cl A*		44,589			6,929
TreeHouse Foods*		185,904			17,605
					24,534
Energy — 1.8%
World Fuel Services		433,137			19,911
Financials — 31.9%
AMERISAFE		80,587			4,894
AmTrust Financial Services		1,688,068			44,768
Bank of the Ozarks#		1,070,989			41,672
Colliers International Group (Canada)		445,252			17,467
Credit Acceptance*#		182,102			34,115
Diamond Hill Investment Group*		37,886			6,829
Eagle Bancorp*		842,012			43,355
FirstService (Canada)  (A)		589,681			27,868
Home BancShares		372,607			16,376
LegacyTexas Financial Group		1,007,331			27,118
National General Holdings		1,552,198			32,177
PRA Group*#		1,196,821			32,925
RLI		518,242			34,261
					363,825
Healthcare — 6.9%
CorVel*		244,105			11,751
Neogen*		701,613			34,639
PAREXEL International*		520,701			32,747
					79,137
Industrials — 17.9%
Astronics*		738,145			28,419
B/E Aerospace		254,616			12,130
Colfax*		301,698			8,173
EnerSys		521,429			31,348
Genesee & Wyoming, Cl A*		152,118			9,138
GP Strategies*  (A)		442,386			10,617
HEICO		420,622			27,992
KLX*		380,085			12,501
On Assignment*		678,735			25,568
Patrick Industries*		262,677			14,035
Wesco Aircraft Holdings*		1,738,667			24,498
					204,419
Information Technology — 11.9%
Manhattan Associates*		747,218			49,264
Open Text (Canada)#		408,490			23,970
OSI Systems*		217,207			11,573
Tyler Technologies*		184,300			28,251

	Number  of Shares		Value (000)
WEX*		243,266	$	22,444
				135,502
Materials — 3.6%
Balchem		354,937		21,278
Neenah Paper		289,164		20,065
				41,343
Total Common Stocks
(Cost $932,578)				1,094,422
MONEY MARKET FUND — 4.2%
PNC Government Money Market Fund, Class I Shares 0.080%†  (B)		47,628,925		47,629
Total Money Market Fund
(Cost $47,629)				47,629
Total Investments Before Short-Term Investments  Purchased with Collateral from Securities Loaned – 100.2%
(Cost $980,207)				1,142,051
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 5.4%
Affiliated Money Market Fund — 4.8%
PNC Government Money Market Fund, Class I Shares 0.080%†  (B)		54,108,589		54,109
Money Market Fund — 0.6%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250%  (B)		6,825,047		6,825
Total Short-Term Investments Purchased With Collateral From Securities Loaned
(Cost $60,934)‡				60,934
TOTAL INVESTMENTS — 105.6%
(Cost $1,041,141)**				1,202,985
Other Assets & Liabilities – (5.6)%				(63,289	)
TOTAL NET ASSETS — 100.0%			$	1,139,696

*  Non-income producing security.

**  Aggregate cost for Federal income tax purposes is (000) $1,050,869.

Gross unrealized appreciation (000)	$	187,005
Gross unrealized depreciation (000)		(34,889	)
Net unrealized appreciation (000)	$	152,116

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $60,030 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Illiquid Security. Total value of illiquid securities is $38,485 (000) and represents 3.4% of net assets as of May 31, 2016.

(B) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

140

P N C  S m a l l  C a p  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	1,094,422		$	–		$	–		$	1,094,422
Money Market Fund			47,629			–			–			47,629
Short-Term Investments Purchased With Collateral From Securities Loaned			60,934			–			–			60,934
Total Assets - Investments in Securities		$	1,202,985		$	–		$	–		$	1,202,985

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	60,934		$	–		$	60,934
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	60,934		$	–		$	60,934

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

141

P N C  S m a l l  C a p  I n d e x  F u n d

C O N D E N S E D  S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)			Percentage     of Net     Assets†
COMMON STOCKS — 97.2%
Consumer Discretionary — 12.9%
Burlington Stores*		408		$	24		0.3%
Pool		244			22		0.2%
Vail Resorts		203			27		0.3%
Other Securities		55,281			1,143		12.1%
					1,216		12.9%
Consumer Staples — 3.3%
Casey’s General Stores		207			25		0.3%
Post Holdings*		326			25		0.2%
TreeHouse Foods*		301			28		0.3%
Other Securities		7,594			232		2.5%
					310		3.3%
Energy — 2.6%
Other Securities		35,870			248		2.6%
Financials — 25.8%
CNO Financial Group		1,051			21		0.2%
CubeSmart REIT		984			31		0.3%
CyrusOne REIT		417			21		0.2%
DCT Industrial Trust REIT		475			21		0.2%
EPR Properties REIT		322			23		0.3%
First American Financial		606			23		0.3%
FirstMerit		942			22		0.2%
Gramercy Property Trust REIT		2,382			21		0.2%
Highwoods Properties REIT		531			26		0.3%
Investors Bancorp		1,858			22		0.3%
MarketAxess Holdings		209			29		0.3%
Medical Properties Trust REIT		1,350			20		0.2%
Prosperity Bancshares		407			22		0.2%
Sovran Self Storage REIT		222			24		0.3%
Sun Communities REIT		300			21		0.2%
Webster Financial		518			20		0.2%
Other Securities		102,484			2,060		21.9%
					2,427		25.8%
Healthcare — 13.3%
ABIOMED*		234			23		0.3%
Amsurg*		301			23		0.2%
Anacor Pharmaceuticals*		233			23		0.2%
HealthSouth		521			21		0.2%
Neurocrine Biosciences*		473			23		0.3%
PAREXEL International*		309			19		0.2%
STERIS PLC (United Kingdom)		470			33		0.4%
Team Health Holdings*		409			20		0.2%
WellCare Health Plans*		249			25		0.3%
West Pharmaceutical Services		399			30		0.3%
Other Securities		68,849			1,005		10.7%
					1,245		13.3%
Industrials — 13.0%
Curtiss-Wright		253			21		0.2%
Teledyne Technologies*		201			20		0.2%
Woodward		353			20		0.2%
Other Securities		45,368			1,165		12.4%
					1,226		13.0%
Information Technology — 17.8%
EPAM System*		280			21		0.2%
Euronet Worldwide*		292			23		0.3%

	Number of Shares		Value (000)			Percentage     of Net     Assets†
Fair Isaac		177		$	20		0.2%
FEI		232			25		0.3%
Guidewire Software*		386			23		0.2%
Manhattan Associates*		413			27		0.3%
MAXIMUS		376			22		0.2%
Microsemi*		621			21		0.2%
Tyler Technologies*		187			29		0.3%
Other Securities		71,684			1,460		15.6%
					1,671		17.8%
Materials — 4.3%
Berry Plastics Group*		673			27		0.3%
Olin		928			21		0.2%
Other Securities		20,754			353		3.8%
					401		4.3%
Telecommunication Services — 0.8%
Other Securities		8,477			73		0.8%
Utilities — 3.4%
IDACORP		275			20		0.2%
Piedmont Natural Gas		421			25		0.3%
Other Securities		7,602			270		2.9%
					315		3.4%
Total Common Stocks
(Cost $9,328)					9,132		97.2%
EXCHANGE-TRADED FUND — 2.1%
iShares Russell 2000 Index Fund (USA)††		1,721			198		2.1%
Total Exchange-Traded Fund
(Cost $190)					198		2.1%
MONEY MARKET FUND — 0.8%
PNC Government Money Market Fund, Class I Shares 0.080%††(A)		69,289			69		0.8%
Total Money Market Fund
(Cost $69)					69		0.8%
RIGHTS — 0.0%
Other Securities		309			–		0.0%
Total Rights
(Cost $0)					–		0.0%

See Notes to Financial Statements.

142

P N C  S m a l l  C a p  I n d e x  F u n  d

C O N D E N S E D  S C H E D U L E  O F  I N  V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)			Percentage     of Net     Assets†
WARRANTS — 0.0%
Other Securities		64	$	–			0.0%
Total Warrants
(Cost $0)				–			0.0%
TOTAL INVESTMENTS — 100.1%
(Cost $9,587)**				9,399			100.1%
Other Assets & Liabilities				(6	)		(0.1)%
TOTAL NET ASSETS			$	9,393			100.0%

* Non-income producing security.

**   Aggregate cost for Federal income tax purposes is (000) $9,599.

Gross unrealized appreciation (000)	$1,073
Gross unrealized depreciation (000)	(1,273	)
Net unrealized depreciation (000)	$(200	)

† “Other Securities” are those securities that are not among the top 50 holdings of the Fund or do not represent more than 1.0% of the net assets of the Fund or an investment in an affiliate. Some of the individual securities within this category may include securities exempt from registration under Rule 144A of the Securities Act of 1933, fair valued using methods approved by the Board of Trustees and/or non-income producing securities.

††  Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

The Condensed Schedule of Investments does not reflect the complete portfolio holdings of the Fund. It includes the Fund’s largest 50 holdings, and each investment of any issuer that exceeds 1% of the Fund’s net assets and investments in affiliates. “Other Securities” represent all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). The complete Schedule of Investments is available (i) without charge, upon request, by calling 1-800-622-FUND (3863); and (ii) on the SEC’s website at http://www.sec.gov.

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	9,130		$	–		$	2		$	9,132
Money Market Fund			69			–			–			69
Exchange-Traded Fund			198			–			–			198
Rights			–			–			–			–
Warrants			–			–			–			–
Total Assets - Investments in Securities		$	9,397		$	–		$	2		$	9,399

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

143

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P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D   L I A B I L I T I E S    ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Balanced Allocation Fund			International Equity Fund			International Growth Fund			Large Cap Core Fund
ASSETS
Investments in non-affiliates at value		$	51,794		$	749,152		$	3,076		$	27,833
Investments in affiliates at value			7,601			51,158			233			375
Short-term investment in non-affiliates held as collateral for loaned securities at value			49			5,645			–			32
Short-term investment in affiliates purchased with collateral from securities loaned at value			394			44,756			–			252
Total Investments at value(1)(2)			59,838			850,711			3,309			28,492
Initial margin held by broker for open futures contracts			–			279			–			–
Receivable for investments sold			124			–			–			289
Receivable for shares of beneficial interest issued			–			4,431			–			11
Dividends and interest receivable			212			2,251			8			56
Foreign currency, at value(3)			1			66			1			–
Unrealized appreciation on forward currency contracts			50			2,525			–			–
Receivable from Adviser			–			–			12			–
Prepaid expenses			21			30			–			11
Other assets			12			74			–			8
Total Assets			60,258			860,367			3,330			28,867
LIABILITIES
Payable for collateral received for loaned securities			443			50,401			–			284
Payable for shares of beneficial interest redeemed			365			273			–			1
Payable for investment securities purchased			128			28			–			279
Variation margin payable from broker for open futures contracts			–			2			–			–
Unrealized depreciation on forward currency contracts			48			2,430			–			–
Investment advisory fees payable			14			523			–			8
12b-1 fees payable
Class A			4			8			–			1
Class C			–			2			–			–
Shareholder servicing fees payable
Class A			3			7			–			1
Class C			–			1			–			–
Administration fees payable			4			40			2			3
Custodian fees payable			13			82			5			2
Transfer agent fees payable			23			53			5			14
Trustees’ deferred compensation payable			12			74			–			8
Trustees’ fees payable			1			16			3			1
Other liabilities			61			126			20			15
Total Liabilities			1,119			54,066			35			617
TOTAL NET ASSETS		$	59,139		$	806,301		$	3,295		$	28,250
Investments in non-affiliates at cost		$	46,755		$	708,459		$	2,827		$	25,347
Investments in affiliates at cost			9,213			51,158			231			375
Short-term investment in non-affiliates held as collateral for loaned securities at cost			49			5,645			–			32
Short-term investment in affiliates purchased with collateral from securities loaned at cost			394			44,756			–			252
(1)Total Investments at cost		$	56,411		$	810,018		$	3,058		$	26,006
(2)Includes securities on loan with a value of		$	437		$	43,611		$	–		$	282
(3)Foreign currency, at cost		$	1		$	66		$	1		$	–

See Notes to Financial Statements.

145

	Balanced Allocation Fund				International  Equity Fund				International   Growth Fund				Large Cap   Core   Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	55,759			$	805,676			$	3,020			$	52,260
Undistributed (Distributions in Excess of) Net Investment Income			109				6,454				19				56
Accumulated Net Realized Gain (Loss) on Investments and Futures			(157	)			(46,582	)			5				(26,552	)
Net Unrealized Appreciation/Depreciation of Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency			1				(14	)			–				–
Net Unrealized Appreciation/Depreciation on Investments and Futures			3,427				40,767				251				2,486
Total Net Assets		$	59,139			$	806,301			$	3,295			$	28,250
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	48,964,758			$	769,692,211			$	3,273,448			$	24,314,387
Class I shares outstanding			3,830,693				41,430,894				299,857				1,413,964
Net Asset Value, Offering and Redemption Price Per Share		$	12.78			$	18.58			$	10.92			$	17.20
Net assets applicable to Class A		$	9,559,086			$	33,483,172			$	21,818			$	3,674,137
Class A shares outstanding			745,617				1,817,776				2,000				218,308
Net Asset Value and Redemption Price Per Share		$	12.82			$	18.42			$	10.91			$	16.83
Maximum Offering Price Per Share(4)		$	13.46			$	19.49			$	11.54			$	17.81
Maximum Sales Charge Per Share			4.75	%			5.50	%			5.50	%			5.50	%
Net assets applicable to Class C		$	614,032			$	3,125,424				NA			$	261,380
Class C shares outstanding			48,666				177,008				NA				16,827
Net Asset Value and Offering Price Per Share(5)		$	12.62			$	17.66				NA			$	15.53
Net assets applicable to Class T		$	1,027.50				N/A				N/A				N/A
Class T shares outstanding			79.84				N/A				N/A				N/A
Net Asset Value and Redemption Price Per Share		$	12.87				N/A				N/A				N/A
Maximum Offering Price Per Share(4)		$	13.34				N/A				N/A				N/A
Maximum Sales Charge Per Share			3.50	%			N/A				N/A				N/A

⁽⁴⁾    Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽⁵⁾    Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

146

P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S    ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Large Cap			Large Cap			Mid Cap			Mid Cap
	Growth Fund			Value Fund			Fund			Index Fund
ASSETS
Investments in non-affiliates at value		$	95,205		$	111,014		$	9,024		$	5,216
Investments in affiliates at value			2,450			2,194			194			91
Short-term investment in non-affiliates held as collateral for loaned securities at value			173			–			92			–
Short-term investment in affiliates purchased with collateral from securities loaned at value			1,373			–			735			–
Total Investments at value(1)(2)			99,201			113,208			10,045			5,307
Initial margin held by broker for open futures contracts			42			–			–			–
Receivable for investments sold			–			–			–			227
Receivable for shares of beneficial interest issued			128			131			2			1
Dividends and interest receivable			149			353			9			6
Receivable from Adviser			–			–			1			7
Prepaid expenses			15			15			11			6
Other assets			22			31			9			–
Total Assets			99,557			113,738			10,077			5,554
LIABILITIES
Payable for collateral received for loaned securities			1,546			–			827			–
Payable for shares of beneficial interest redeemed			222			92			3			–
Payable for investment securities purchased			503			–			–			209
Variation margin payable from broker for open futures contracts			1			–			–			–
Investment advisory fees payable			30			45			–			–
12b-1 fees payable
Class A			8			11			1			–
Class C			1			–			–			–
Shareholder servicing fees payable
Class A			6			8			2			–
Administration fees payable			6			7			2			2
Custodian fees payable			3			3			3			5
Transfer agent fees payable			45			37			17			7
Trustees’ deferred compensation payable			22			31			9			–
Trustees’ fees payable			2			3			–			–
Other liabilities			45			45			17			15
Total Liabilities			2,440			282			881			238
TOTAL NET ASSETS		$	97,117		$	113,456		$	9,196		$	5,316
Investments in non-affiliates at cost		$	87,235		$	102,045		$	7,828		$	4,752
Investments in affiliates at cost			2,448			2,190			194			91
Short-term investment in non-affiliates held as collateral for loaned securities at cost			173			–			92			–
Short-term investment in affiliates purchased with collateral from securities loaned at cost			1,373			–			735			–
(1)Total Investments at cost		$	91,229		$	104,235		$	8,849		$	4,843
(2)Includes securities on loan with a value of		$	1,536		$	–		$	811		$	–

See Notes to Financial Statements.

147

	Large Cap				Large Cap				Mid Cap				Mid Cap
	Growth Fund				Value Fund				Fund				Index Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	109,898			$	179,373			$	71,079			$	5,026
Undistributed (Distributions in Excess of) Net Investment Income			311				299				(24	)			21
Accumulated Net Realized Gain (Loss) on Investments and Futures			(21,108	)			(75,189	)			(63,056	)			(195	)
Net Unrealized Appreciation/Depreciation on Investments and Futures			8,016				8,973				1,197				464
Total Net Assets		$	97,117			$	113,456			$	9,196			$	5,316
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	69,129,790			$	77,554,101			$	1,717,726			$	3,148,766
Class I shares outstanding			2,431,641				3,617,402				98,589				293,899
Net Asset Value, Offering and Redemption Price Per Share		$	28.43			$	21.44			$	17.42			$	10.71
Net assets applicable to Class A		$	27,037,574			$	35,716,590			$	6,814,700				N/A
Class A shares outstanding			969,541				1,670,533				395,670				N/A
Net Asset Value and Redemption Price Per Share		$	27.89			$	21.38			$	17.22				N/A
Maximum Offering Price Per Share(3)		$	29.51			$	22.62			$	18.22				N/A
Maximum Sales Charge Per Share			5.50	%			5.50	%			5.50	%			N/A
Net assets applicable to Class C		$	950,029			$	185,562			$	663,352				N/A
Class C shares outstanding			37,509				8,836				40,704				N/A
Net Asset Value, Offering and Redemption Price Per Share(4)		$	25.33			$	21.00			$	16.30				N/A
Net assets applicable to Class R4			N/A				N/A				N/A			$	2,167,274
Class R4 shares outstanding			N/A				N/A				N/A				202,160
Net Asset Value and Offering Price Per Share			N/A				N/A				N/A			$	10.72

⁽³⁾    Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽⁴⁾    Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

148

P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S    ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Multi-Factor Small Cap Core Fund			Multi-Factor Small Cap Growth Fund			Multi-Factor         Small Cap         Value Fund
ASSETS
Investments in non-affiliates at value		$	181,085		$	93,136		$	25,878
Investments in affiliates at value			2,757			2,385			527
Short-term investment in non-affiliates held as collateral for loaned securities at value			604			275			300
Short-term investment in affiliates purchased with collateral from securities loaned at value			4,788			2,184			2,384
Total Investments at value(1)(2)			189,234			97,980			29,089
Receivable for shares of beneficial interest issued			300			299			25
Dividends and interest receivable			200			80			33
Prepaid expenses			20			21			12
Other assets			9			7			14
Total Assets			189,763			98,387			29,173
LIABILITIES
Payable for collateral received for loaned securities			5,392			2,459			2,684
Payable for shares of beneficial interest redeemed			256			356			70
Payable for investment securities purchased			–			1,573			–
Investment advisory fees payable			69			11			2
12b-1 fees payable
Class A			20			11			4
Class C			–			4			1
Shareholder servicing fees payable
Class A			20			9			3
Class C			–			4			1
Administration fees payable			10			6			3
Custodian fees payable			8			6			2
Transfer agent fees payable			38			55			23
Trustees’ deferred compensation payable			9			7			14
Trustees’ fees payable			3			1			1
Other liabilities			52			39			22
Total Liabilities			5,877			4,541			2,830
TOTAL NET ASSETS		$	183,886		$	93,846		$	26,343
Investments in non-affiliates at cost		$	166,529		$	83,775		$	25,193
Investments in affiliates at cost			2,757			2,385			527
Short-term investment in non-affiliates held as collateral for loaned securities at cost			604			275			300
Short-term investment in affiliates purchased with collateral from securities loaned at cost			4,788			2,184			2,384
(1)Total Investments at cost		$	174,678		$	88,619		$	28,404
(2)Includes securities on loan with a value of		$	5,233		$	2,414		$	2,641

See Notes to Financial Statements.

149

	Multi-Factor     Small Cap Core Fund				Multi-Factor Small Cap     Growth Fund				Multi-Factor      Small Cap Value Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	175,259			$	85,692			$	74,830
Undistributed (Accumulated) Net Investment Income (Loss)			444				(6	)			714
Accumulated Net Realized Gain (Loss) on Investments and Futures			(6,373	)			(1,201	)			(49,886	)
Net Unrealized Appreciation/Depreciation on Investments and Futures			14,556				9,361				685
Total Net Assets		$	183,886			$	93,846			$	26,343
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	112,054,550			$	49,112,072			$	13,442,145
Class I shares outstanding			5,476,714				2,500,874				675,858
Net Asset Value, Offering and Redemption Price Per Share		$	20.46			$	19.64			$	19.89
Net assets applicable to Class A		$	71,831,288			$	37,139,034			$	11,351,438
Class A shares outstanding			3,536,224				1,925,210				619,567
Net Asset Value and Redemption Price Per Share		$	20.31			$	19.29			$	18.32
Maximum Offering Price Per Share(3)		$	21.49			$	20.41			$	19.39
Maximum Sales Charge Per Share			5.50	%			5.50	%			5.50	%
Net assets applicable to Class C			N/A			$	7,594,543			$	1,549,706
Class C shares outstanding			N/A				403,589				94,799
Net Asset Value and Offering Price Per Share(4)			N/A			$	18.82			$	16.35

⁽³⁾    Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽⁴⁾    Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

150

P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S    ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	S&P 500 Index Fund			Small Cap Fund			Small Cap Index Fund
ASSETS
Investments in non-affiliates at value		$	167,626		$	1,094,422		$	9,132
Investments in affiliates at value			2,968			47,629			267
Short-term investment in non-affiliates held as collateral for loaned securities at value			73			6,825			–
Short-term investment in affiliates purchased with collateral from securities loaned at value			575			54,109			–
Total Investments at value(1)(2)			171,242			1,202,985			9,399
Initial margin held by broker for open futures contracts			42			–			–
Receivable for investments sold			32			1,921			–
Receivable for shares of beneficial interest issued			56			1,926			9
Dividends and interest receivable			378			614			11
Receivable from Adviser			–			–			14
Prepaid expenses			28			54			7
Other assets			24			60			–
Total Assets			171,802			1,207,560			9,440
LIABILITIES
Payable for collateral received for loaned securities			648			60,934			–
Payable for shares of beneficial interest redeemed			57			1,953			–
Payable for investment securities purchased			–			3,689			–
Variation margin payable from broker for open futures contracts			1			–			–
Investment advisory fees payable			3			684			–
12b-1 fees payable
Class A			–			27			–
Class C			5			17			–
Shareholder servicing fees payable
Class A			4			18			–
Class C			3			10			–
Class R4			1			–			–
Administration fees payable			10			52			2
Custodian fees payable			5			15			2
Transfer agent fees payable			26			162			7
Trustees’ deferred compensation payable			24			60			–
Trustees’ fees payable			4			18			–
Other liabilities			54			225			36
Total Liabilities			845			67,864			47
TOTAL NET ASSETS		$	170,957		$	1,139,696		$	9,393
Investments in non-affiliates at cost		$	76,922		$	932,578		$	9,328
Investments in affiliates at cost			2,572			47,629			259
Short-term investment in non-affiliates held as collateral for loaned securities at cost			73			6,825			–
Short-term investment in affiliates purchased with collateral from securities loaned at cost			575			54,109			–
(1)Total Investments at cost		$	80,142		$	1,041,141		$	9,587
(2)Includes securities on loan with a value of		$	635		$	60,030		$	–

See Notes to Financial Statements.

151

	S&P 500 Index Fund				Small Cap Fund				Small Cap             Index Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)		$	83,076			$	1,003,487			$	9,744
Undistributed (Distributions in Excess of) Net Investment Income			490				(527	)			33
Accumulated Net Realized Gain (Loss) on Investments and Futures			(3,753	)			(25,108	)			(196	)
Net Unrealized Appreciation/Depreciation on Investments and Futures			91,144				161,844				(188	)
Total Net Assets		$	170,957			$	1,139,696			$	9,393
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I		$	138,427,160			$	1,045,985,690			$	8,085,237
Class I shares outstanding			8,489,962				49,648,241				816,532
Net Asset Value, Offering and Redemption Price Per Share		$	16.30			$	21.07			$	9.90
Net assets applicable to Class A		$	20,002,796			$	65,490,864				N/A
Class A shares outstanding			1,232,042				3,204,547				N/A
Net Asset Value and Redemption Price Per Share		$	16.24			$	20.44				N/A
Maximum Offering Price Per Share(3)		$	16.66			$	21.63				N/A
Maximum Sales Charge Per Share			2.50	%			5.50	%			N/A
Net assets applicable to Class C		$	7,023,415			$	28,219,813				N/A
Class C shares outstanding			437,301				1,509,774				N/A
Net Asset Value and Offering Price Per Share(4)		$	16.06			$	18.69				N/A
Net assets applicable to Class R4		$	4,943,643				N/A			$	1,307,743
Class R4 shares outstanding			303,219				N/A				132,154
Net Asset Value and Offering Price Per Share		$	16.30				N/A			$	9.90
Net assets applicable to Class R5		$	559,811				N/A				N/A
Class R5 shares outstanding			34,334				N/A				N/A
Net Asset Value and Offering Price Per Share		$	16.30				N/A				N/A

⁽³⁾    Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽⁴⁾    Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

152

P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  O P E R A T I O N S    ( 0 0 0 )

F o r  t h e  Y e a r  E n d e d  M a y  3 1 ,  2 0 1 6

	Balanced    Allocation    Fund				International     Equity Fund				International     Growth Fund*				Large Cap   Core Fund
Investment Income:
Dividends from unaffiliated investments		$	626			$	16,997			$	30			$	529
Dividends from affiliated investments(1)			196				115				–				–
Interest			643				143				–				–
Security lending income(2)			82				727				–				49
Less: foreign taxes withheld			(13	)			(1,945	)			(4	)			(2	)
Total Investment Income			1,534				16,037				26				576
Expenses:
Investment advisory fees			462				6,301				6				199
Administration fees			37				375				3				17
12b-1 fees:
Class A			4				11				–				1
Class C			5				22				–				2
Shareholder servicing fees:
Class A			23				51				–				7
Class C			1				5				–				1
Class R4			–				–				–				–
Transfer agent fees			71				135				5				45
Custodian fees			31				183				5				3
Professional fees			41				130				22				27
Pricing service fees			61				31				4				3
Printing and shareholder reports			39				73				–				5
Registration and filing fees			61				59				1				35
Trustees’ fees			8				44				5				7
Miscellaneous			8				101				1				3
Total Expenses			852				7,521				52				355
Less:
Waiver of investment advisory fees(1)			(224	)			(580	)			(6	)			(101	)
Advisor expense reimbursement(1)			–				–				(39	)			–
Net Expenses			628				6,941				7				254
Net Investment Income (Loss)			906				9,096				19				322
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on unaffiliated investments sold			1,395				(22,215	)			1				1,691
Net realized gain (loss) on affiliated investments sold(1)			(426	)			(1,429	)			4				–
Net realized gain (loss) on futures			23				(1,084	)			–				–
Net realized gain (loss) on foreign currency transactions			33				1,762				–				–
Net change in unrealized appreciation/depreciation on unaffiliated investments			(2,100	)			(30,821	)			249				(2,270	)
Net change in unrealized appreciation/depreciation on affiliated investments			(802	)			(3,694	)			2				–
Net change in unrealized appreciation/depreciation on futures			(14	)			(328	)			–				–
Net change in unrealized appreciation/depreciation on foreign currency translation			(44	)			(2,262	)			–				–
Net Gain (Loss) on Investments			(1,935	)			(60,071	)			256				(579	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$	(1,029	)		$	(50,975	)		$	275			$	(257	)

*  Commenced operations on February 29, 2016.

⁽¹⁾  See Note 3 in Notes to Financial Statements.

⁽²⁾  See Note 9 in Notes to Financial Statements.

See Notes to Financial Statements.

153

Large Cap Growth Fund				Large Cap Value Fund				Mid Cap Fund				Mid Cap Index Fund				Multi-Factor Small Cap Core Fund				Multi-Factor Small Cap Growth Fund
	$	1,639			$	2,919			$	79			$	71			$	1,675			$	553
		1				34				–				–				3				2
		–				–				–				–				–				–
		1				–				10				–				274				35
		(1	)			(24	)			(1	)			–				(1	)			–
		1,640				2,929				88				71				1,951				590
		702				834				75				7				1,251				592
		51				60				9				4				74				37
		10				13				1				–				25				13
		9				1				5				–				–				34
		48				61				18				–				134				71
		1				–				2				–				–				8
		–				–				–				2				–				–
		121				103				52				21				104				154
		7				4				5				19				17				14
		37				38				25				23				47				33
		3				3				2				17				5				5
		39				34				9				1				60				38
		38				43				37				22				47				46
		11				11				6				6				13				9
		15				17				5				–				31				19
		1,092				1,222				251				122				1,808				1,073
		(155	)			(116	)			(75	)			(7	)			(467	)			(389	)
		–				–				(24	)			(102	)			–				–
		937				1,106				152				13				1,341				684
		703				1,823				(64	)			58				610				(94	)
		6,827				5,765				255				(38	)			(5,960	)			(190	)
		–				(6	)			–				–				(69	)			(1	)
		(38	)			–				–				–				(115	)			(46	)
		–				–				–				–				–				–
		(10,197	)			(8,804	)			(1,305	)			42				1,415				(814	)
		2				(19	)			–				–				–				–
		33				–				–				–				–				–
		–				–				–				–				–				–
		(3,373	)			(3,064	)			(1,050	)			4				(4,729	)			(1,051	)
	$	(2,670	)		$	(1,241	)		$	(1,114	)		$	62			$	(4,119	)		$	(1,145	)

See Notes to Financial Statements.

154

P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  O P E R A T I O N S    ( 0 0 0 )

F o r  t h e  Y e a r  E n d e d  M a y  3 1 ,  2 0 1 6

	Multi-Factor   Small Cap Value Fund				S&P   500 Index   Fund				Small Cap   Fund				Small Cap       Index Fund
Investment Income:
Dividends from unaffiliated investments		$	820			$	3,795			$	5,030			$	136
Dividends from affiliated investments(1)			3				25				26				–
Interest			–				8				4				–
Security lending income(2)			75				8				1,503				–
Less: foreign taxes withheld			(3	)			–				(62	)			–
Total Investment Income			895				3,836				6,501				136
Expenses:
Investment advisory fees			242				193				7,085				14
Administration fees			18				91				401				7
12b-1 fees:
Class A			5				–				33				–
Class C			11				57				181				–
Shareholder servicing fees:
Class A			28				45				164				–
Class C			3				15				52				–
Class R4			–				7				–				1
Transfer agent fees			71				82				416				21
Custodian fees			6				6				26				26
Professional fees			28				48				138				25
Pricing service fees			6				24				2				71
Printing and shareholder reports			13				14				256				1
Registration and filing fees			38				68				102				22
Trustees’ fees			7				15				49				6
Miscellaneous			9				17				185				–
Total Expenses			485				682				9,090				194
Less:
Waiver of investment advisory fees(1)			(209	)			(193	)			(866	)			(14	)
Advisor expense reimbursement(1)			–				(17	)			–				(155	)
Net Expenses			276				472				8,224				25
Net Investment Income (Loss)			619				3,364				(1,723	)			111
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on unaffiliated investments sold			(117	)			3,066				(20,227	)			(92	)
Net realized gain (loss) on affiliated investments sold(1)			(39	)			–				–				–
Net realized gain (loss) on futures			–				–				44				–
Net change in unrealized appreciation/depreciation on unaffiliated investments			(2,049	)			(5,007	)			(7,555	)			(513	)
Net change in unrealized appreciation/depreciation on affiliated investments			–				(344	)			–				8
Net change in unrealized appreciation/depreciation on futures			–				12				(42	)			–
Net Gain (Loss) on Investments			(2,205	)			(2,273	)			(27,780	)			(597	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$	(1,586	)		$	1,091			$	(29,503	)		$	(486	)

⁽¹⁾  See Note 3 in Notes to Financial Statements.

⁽²⁾  See Note 9 in Notes to Financial Statements.

See Notes to Financial Statements.

155

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P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S  ( 0 0 0 )

	Balanced Allocation Fund								International Equity Fund								International Growth Fund
	For the Year Ended								For the Year Ended								For the Period
	May 31, 2016				May 31, 2015				May 31, 2016				May 31, 2015				February 29,    2016**-    May 31,    2016
Investment Activities:
Net investment income (loss)		$	906			$	876			$	9,096			$	9,011			$     19
Net realized gain (loss) on investments sold, futures and foreign currency transactions			1,025				3,701				(22,966	)			32,400			5
Net change in unrealized appreciation/ depreciation on investments, futures and foreign currency translation			(2,960	)			(1,006	)			(37,105	)			(27,946	)		251
Net increase (decrease) in net assets resulting from operations			(1,029	)			3,571				(50,975	)			13,465			275
Dividends to Shareholders
Dividends from net investment income:
Class I			(846	)			(830	)			(13,647	)			(8,130	)		–
Class A			(133	)			(126	)			(384	)			(168	)		–
Class C			(5	)			(6	)			(43	)			(13	)		–
Distributions from net realized gains:
Class I			(2,333	)			–				–				–			–
Class A			(435	)			–				–				–			–
Class C			(29	)			–				–				–			–
Total dividends and distributions			(3,781	)			(962	)			(14,074	)			(8,311	)		–
Share Transactions:
Proceeds from shares issued:
Class I			2,199				2,930				248,290				117,509			3,000
Class A			417				713				23,823				7,948			20
Class C			9				8				1,462				1,218			–
Class T			1				–				–				–			–
Reinvestment of dividends and distributions:
Class I			3,110				807				7,876				4,703			–
Class A			543				117				335				154			–
Class C			33				6				28				8			–
Total proceeds from shares issued and reinvested			6,312				4,581				281,814				131,540			3,020
Value of shares redeemed:
Class I			(6,985	)			(8,301	)			(55,118	)			(87,473	)		–
Class A			(980	)			(1,693	)			(7,653	)			(3,182	)		–
Class C			(65	)			(146	)			(633	)			(331	)		–
Total value of shares redeemed			(8,030	)			(10,140	)			(63,404	)			(90,986	)		–
Increase (decrease) in net assets from share transactions			(1,718	)			(5,559	)			218,410				40,554			3,020
Total increase (decrease) in net assets			(6,528	)			(2,950	)			153,361				45,708			3,295
Net Assets:
Beginning of year			65,667				68,617				652,940				607,232			–
End of year*		$	59,139			$	65,667			$	806,301			$	652,940			$3,295
*Including undistributed (distributions in excess of) net investment income		$	109			$	109			$	6,454			$	9,670			$     19

^** Commencement of operations.

See Notes to Financial Statements.

157

Large Cap Core Fund				Large Cap Growth Fund				Large Cap Value Fund				Mid Cap Fund
For the Year Ended				For the Year Ended				For the Year Ended				For the Year Ended
May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015
	$     322		$     197		$      703		$      310		$    1,823		$    1,039		$     (64)		$     (37)
	1,691		3,035		6,789		8,335		5,759		12,093		255		641
	(2,270)		593		(10,162)		3,253		(8,823)		(3,735)		(1,305)		493
	(257)		3,825		(2,670)		11,898		(1,241)		9,397		(1,114)		1,097
	(262)		(187)		(461)		(223)		(1,384)		(897)		–		–
	(31)		(19)		(94)		(22)		(341)		(187)		–		–
	(2)		(1)		–		–		(2)		(1)		–		–
	–		–		–		–		–		–		–		–
	–		–		–		–		–		–		–		–
	–		–		–		–		–		–		–		–
	(295)		(207)		(555)		(245)		(1,727)		(1,085)		–		–
	3,870		4,231		6,567		29,310		8,476		15,350		273		335
	3,104		143		15,204		2,217		19,752		208		140		224
	168		136		314		982		12		68		2		1
	–		–		–		–		–		–		–		–
	163		142		264		111		677		476		–		–
	30		19		83		20		314		171		–		–
	1		1		–		–		1		1		–		–
	7,336		4,672		22,432		32,640		29,232		16,274		415		560
	(2,868)		(5,896)		(17,474)		(10,128)		(19,345)		(32,430)		(417)		(539)
	(2,145)		(492)		(3,080)		(2,048)		(8,627)		(2,455)		(1,295)		(1,750)
	(168)		(59)		(610)		(37)		(36)		(46)		(169)		(172)
	(5,181)		(6,447)		(21,164)		(12,213)		(28,008)		(34,931)		(1,881)		(2,461)
	2,155		(1,775)		1,268		20,427		1,224		(18,657)		(1,466)		(1,901)
	1,603		1,843		(1,957)		32,080		(1,744)		(10,345)		(2,580)		(804)
	26,647		24,804		99,074		66,994		115,200		125,545		11,776		12,580
	$28,250		$26,647		$ 97,117		$ 99,074		$113,456		$115,200		$  9,196		$11,776
	$       56		$       29		$      311		$      163		$       299		$       203		$     (24)		$     (41)

See Notes to Financial Statements.

158

P N C  E q u i t y  F u n d s

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S  ( 0 0 0 )

	Mid Cap Index Fund				Multi-Factor Small Cap Core Fund				Multi-Factor Small Cap Growth Fund
	For the Year Ended				For the Year Ended				For the Year Ended
	May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015
Investment Activities:
Net investment income (loss)	$	58	$	43	$	610	$	137	$	(94)		$   (132)
Net realized gain (loss) on investments sold and futures		(38)		(48)		(6,144)		1,711		(237)		2,127
Net change in unrealized appreciation/depreciation on investments and futures		42		350		1,415		6,963		(814)		3,717
Net increase (decrease) in net assets resulting from operations		62		345		(4,119)		8,811		(1,145)		5,712
Dividends and Distributions to Shareholders:
Dividends from net investment income:
Class I		(38)		(43)		(183)		(89)		(40)		–
Class A		–		–		–		(22)		–		–
Class C		–		–		–		–		–		–
Class R4		(15)		–		–		–		–		–
Class R5		–		–		–		–		–		–
Distributions from net realized gains:
Class I		(49)		(68)		(74)		–		(721)		(450)
Class A		–		–		(48)		–		(756)		(780)
Class C		–		–		–		–		(125)		(12)
Class R4		(22)		–		–		–		–		–
Class R5		–		–		–		–		–		–
Total dividends and distributions		(124)		(111)		(305)		(111)		(1,642)		(1,242)
Share Transactions:
Proceeds from shares issued:
Class I		441		3,248		74,344		30,370		38,561		5,364
Class A		–		–		46,107		55,046		18,421		2,534
Class C		–		–		–		–		7,012		1,038
Class R4		2,266		146		–		–		–		–
Class R5		–		–		–		–		–		–
Reinvestment of dividends and distributions:
Class I		87		111		118		59		539		363
Class A		–		–		37		22		580		746
Class C		–		–		–		–		94		9
Class R4		37		–		–		–		–		–
Class R5		–		–		–		–		–		–
Total proceeds from shares issued and reinvested		2,831		3,505		120,606		85,497		65,207		10,054
Value of shares redeemed:
Class I		(2,007)		(1,965)		(20,412)		(8,927)		(6,195)		(2,191)
Class A		–		–		(28,580)		(7,645)		(3,992)		(2,363)
Class C		–		–		–		–		(626)		(23)
Class R4		(338)		–		–		–		–		–
Class R5		–		–		–		–		–		–
Total value of shares redeemed		(2,345)		(1,965)		(48,992)		(16,572)		(10,813)		(4,577)
Increase (decrease) in net assets from share transactions		486		1,540		71,614		68,925		54,394		5,477
Total increase (decrease) in net assets		424		1,774		67,190		77,625		51,607		9,947
Net Assets:
Beginning of year		4,892		3,118		116,696		39,071		42,239		32,292
End of year*	$	5,316	$	4,892	$	183,886	$	116,696	$	93,846		$42,239
*Including undistributed (distributions in excess of) net investment income	$	21	$	16	$	444	$	(15)	$	(6)		$       (3)

See Notes to Financial Statements.

159

Multi-Factor Small Cap Value Fund				S&P 500 Index Fund				Small Cap Fund				Small Cap Index Fund
For the Year Ended				For the Year Ended				For the Year Ended				For the Year Ended
May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015
$	619	$	492	$	3,364	$	3,246	$	(1,723)	$	1,291	$	111	$	55
	(156)		2,838		3,066		2,762		(20,183)		9,367		(92)		101
	(2,049)		(5)		(5,339)		13,680		(7,597)		58,843		(505)		427
	(1,586)		3,325		1,091		19,688		(29,503)		69,501		(486)		583
	(257)		(104)		(2,880)		(2,732)		(992)		(319)		(85)		(61)
	(215)		(101)		(324)		(319)		–		–		–		–
	(24)		(2)		(98)		(72)		–		–		–		–
	–		–		(85)		(25)		–		–		(9)		–
	–		–		(8)		–		–		–		–		–
	–		–		(1,936)		(1,528)		(7,553)		(8,928)		(99)		(99)
	–		–		(255)		(194)		(764)		(1,243)		–		–
	–		–		(112)		(79)		(307)		(411)		–		–
	–		–		(67)		(22)		–		–		(12)		–
	–		–		(7)		–		–		–		–		–
	(496)		(207)		(5,772)		(4,971)		(9,616)		(10,901)		(205)		(160)
	3,263		7,934		14,137		35,990		690,928		232,034		7,845		61
	765		1,448		3,394		3,979		31,679		24,413		–		–
	722		683		1,466		3,067		11,915		5,136		–		–
	–		–		1,762		4,100		–		–		1,435		282
	–		–		365		195		–		–		–		–
	155		69		3,805		4,053		6,107		6,510		184		160
	207		96		561		490		642		1,068		–		–
	17		2		203		147		191		248		–		–
	–		–		152		47		–		–		21		–
	–		–		15		–		–		–		–		–
	5,129		10,232		25,860		52,068		741,462		269,409		9,485		503
	(5,106)		(2,929)		(47,463)		(17,927)		(184,354)		(99,079)		(4,875)		–
	(2,042)		(3,398)		(4,326)		(4,492)		(30,204)		(24,596)		–		–
	(559)		(827)		(2,824)		(6,694)		(3,201)		(4,059)		–		–
	–		–		(799)		(374)		–		–		(362)		(7)
	–		–		(13)		(16)		–		–		–		–
	(7,707)		(7,154)		(55,425)		(29,503)		(217,759)		(127,734)		(5,237)		(7)
	(2,578)		3,078		(29,565)		22,565		523,703		141,675		4,248		496
	(4,660)		6,196		(34,246)		37,282		484,584		200,275		3,557		919
	31,003		24,807		205,203		167,921		655,112		454,837		5,836		4,917
$	26,343	$	31,003	$	170,957	$	205,203	$	1,139,696	$	655,112	$	9,393	$	5,836
$	714	$	494	$	490	$	589	$	(527)	$	954	$	33	$	16

See Notes to Financial Statements.

160

P N C  F i x e d  I n c o m e  F u n d s

B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2009

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

161

PNC Bond Fund seeks to provide current income as well as preservation of capital by investing primarily in a diversified portfolio of investment-grade fixed income securities.

How did the Fund perform during the annual period?

During the annual period, PNC Bond Fund returned 0.40% to Class C Shares investors⁽¹⁾ and 2.27% to Class I Shares investors. The Fund’s benchmark, the Barclays U.S. Aggregate Bond Index⁽²⁾ (the “Index”), returned 2.99%.

What factors most significantly affected the Fund’s performance during the annual period?

● Issue selection within the corporate credit sector was the primary detractor from relative results. Holdings in the energy and materials industries were particularly weak performers during the annual period.

● While sector allocation as a whole had a positive effect on the Fund’s relative results, having an overweighted allocation to the corporate credit sector, which lagged the Index during the annual period, detracted.

● On the positive side, having an overweighted allocation to asset-backed securities, which outperformed the Index during the annual period, and having underweighted exposure to the non-corporate credit sector, which lagged the Index during the annual period, added value.

● The combination of duration and yield curve positioning contributed most positively to the Fund’s results. The Fund had a shorter duration than that of the Index at the short-term end of the yield curve, or spectrum of maturities, which helped as shorter-term U.S. Treasury yields increased during the annual period. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

● At the end of the annual period, the Fund maintained overweighted allocations to the corporate credit and asset-backed securities sectors and underweighted allocations to the U.S. Treasury, agency securities and non-corporate credit sectors.The Fund also maintained its short duration relative to that of the Index.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Bond Fund
Corporate Bonds	30.6%
U.S. Treasury Notes	26.2
Federal National Mortgage Association	23.1
Asset-Backed Securities	8.1
U.S. Treasury Bonds	5.2
Government National Mortgage Association	2.6
Federal Home Loan Mortgage Corporation	2.0
Money Market Fund	1.7
Transportation Revenue Bond	0.5
	100.0%

P N C  F i x e d  I n c o m e  F u n d s

B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years	5 Years	10 Years	Since   Inception	Max Sales Charge	Max CDSC		Total Gross Fund Operating Expenses (5)	Total Net  Fund  Operating  Expenses  (5)
Class I Shares		10/31/88		2.27	%	2.15%	2.73%	4.42%	5.76%	N/A		N/A	0.58%	0.53%
Class A Shares(1)		10/31/88		-2.57	%	0.47%	1.61%	3.71%	5.36%	4.50%		0.50%(4)	0.86%	0.81%
Class C Shares		6/12/00		0.40	%(1)	1.18%	1.72%	3.40%	4.73%	N/A		1.00%	1.58%	1.53%
Barclays U.S. Aggregate Bond Index				2.99	%	2.91%	3.33%	4.97%	6.50%	N/A		N/A	N/A	N/A

⁽¹⁾ Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾ The Barclays U.S. Aggregate Bond Index, an unmanaged market value weighted index of fixed income securities, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception.

⁽⁴⁾ This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

162

P N C  F i x e d  I n c o m e  F u n d s

G O V E R N M E N T  M O R T G A G E  F U N D  O V E R V I E W  ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2009

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

163

PNC Government Mortgage Fund seeks to provide current income as well as preservation of capital by investing in a diversified portfolio of mortgage-related securities.

How did the Fund perform during the annual period?

During the annual period, PNC Government Mortgage Fund returned -0.23% to Class C Shares investors⁽¹⁾ and 1.66% to Class I Shares investors. The Fund’s benchmark, the Barclays U.S. Mortgage-Backed Securities Fixed Rate Index⁽²⁾ (the “Index”), returned 2.72%.

What factors most significantly affected the Fund’s performance during the annual period?

● The combination of duration and yield curve positioning detracted from the Fund’s relative results. The Fund had a shorter duration than that of the Index, which detracted from relative performance as U.S. Treasury yields at the intermediate and longer-term segments of the yield curve, or spectrum of maturities, declined during the annual period. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

● Security selection amongst conventional 15-year mortgage-backed securities further dampened the Fund’s relative results.

● Having an overweighted allocation to U.S. Treasury securities had a modestly negative effect on the Fund’s relative performance, as U.S.Treasuries outperformed mortgage-backed securities during the annual period.

● At the end of the annual period, the Fund maintained an underweighted allocation to Ginnie Mae securities and overweighted allocations to conventional mortgages and U.S. Treasury securities. The Fund also maintained its short duration relative to that of the Index.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Government Mortgage Fund
Federal National Mortgage Association	66.2%
Government National Mortgage Association	13.5
Federal Home Loan Mortgage Corporation	10.3
U.S. Treasury Notes	8.5
Money Market Fund	1.5
Collateralized Mortgage Obligation	–*
	100.0%
* Amount represents less than 0.1%.

P N C  F i x e d  I n c o m e  F u n d s

G O V E R N M E N T  M O R T G A G E  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years	5 Years	10 Years	Since   Inception	Max Sales Charge	Max CDSC		Total Gross Fund Operating Expenses (5)	Total Net  Fund  Operating  Expenses  (5)
Class I Shares		11/12/92		1.66	%	2.24%	2.07%	4.30%	5.03%	N/A		N/A	0.73%	0.65%
Class A Shares(1)		11/12/92		-3.20	%	0.41%	0.88%	3.55%	4.58%	4.50%		0.50%(4)	1.01%	0.93%
Class C Shares		6/21/00		-0.23	%(1)	1.23%	1.08%	3.27%	4.07%	N/A		1.00%	1.73%	1.65%
Barclays U.S. Mortgage-Backed Securities Fixed Rate Index				2.72	%	3.17%	2.88%	4.93%	5.66%	N/A		N/A	N/A	N/A

⁽¹⁾ Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾ The Barclays U.S. Mortgage-Backed Securities Fixed Rate Index, a widely used, unmanaged index of mortgage-backed securities, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾ This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

164

P N C  F i x e d  I n c o m e  F u n d s

H I G H  Y I E L D  B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2009

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

165

PNC High Yield Bond Fund seeks to provide a high level of current income along with capital appreciation by investing primarily in a portfolio of high-yield debt securities (also known as “junk bonds”).

How did the Fund perform during the annual period?

During the annual period, PNC High Yield Bond Fund returned -6.96% to Class A Shares investors⁽¹⁾ and -2.36% to Class I Shares investors. The Fund’s benchmark, the Barclays U.S. Corporate High Yield Index⁽²⁾ (the “Index”), returned -0.81%.

What factors most significantly affected the Fund’s performance during the annual period?

● Detracting most from the Fund’s relative performance was issue selection overall. Holdings in the energy and materials industries were particularly weak performers during the annual period.

● Credit quality allocation also added value overall. During the annual period as a whole, higher-rated credit generally outperformed lower-rated credit. The Fund’s underweighted allocation to lower-rated credit and overweighted allocation to higher-rated credit contributed favorably to its relative results.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

High Yield Bond Fund
Corporate Bonds	99.5%
Common Stock	0.4
Money Market Fund	0.1
	100.0%

P N C  F i x e d  I n c o m e  F u n d s

H I G H  Y I E L D  B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception	1 Year			3 Years	5 Years	Since   Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net  Fund  Operating  Expenses  (5)
Class I Shares	4/29/08		-2.36	%	1.61%	4.52%	6.22%	N/A	N/A	0.93%	0.75%
Class A Shares(1)	4/29/08		-6.96	%	-0.19%	3.31%	5.36%	4.50%	0.50%(4)	1.19%	1.01%
Barclays U.S. Corporate High Yield Index			-0.81	%	2.95%	5.44%	7.81%	N/A	N/A	N/A	N/A

⁽¹⁾ Performance of Class A Shares assumes the deduction of the maximum sales charge.

⁽²⁾ The Barclays U.S. Corporate High Yield Index, an unmanaged index representative of the U.S. corporate high-yield fixed income markets, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund since its date of inception. The graph shows performance of its Class I and Class A Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾ This maximum applicable contingent deferred sales charge (“Max CDSC”) applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

166

P N C  F i x e d  I n c o m e  F u n d s

I N T E R M E D I A T E  B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2009

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

167

PNC Intermediate Bond Fund seeks to provide current income as well as preservation of capital by investing primarily in a portfolio of domestic and foreign investment-grade fixed income securities.

How did the Fund perform during the annual period?

During the annual period, PNC Intermediate Bond Fund returned -0.77% to Class C Shares investors⁽¹⁾ and 1.09% to Class I Shares investors. The Fund’s benchmark, the Barclays Intermediate U.S. Government/Credit Bond Index⁽²⁾ (the “Index”), returned 2.24%.

What factors most significantly affected the Fund’s performance during the annual period?

● Issue selection within the corporate credit sector was the primary detractor from relative results. Holdings in the energy and materials industries were particularly weak performers during the annual period.

● The combination of duration and yield curve positioning also detracted from the Fund’s results. The Fund had a shorter duration than that of the Index, which detracted from relative performance as U.S. Treasury yields at the intermediate and longer-term segments of the yield curve, or spectrum of maturities, declined during the annual period. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

● Sector allocation overall contributed positively to the Fund’s relative results. More specifically, having an overweighted allocation to the asset-backed securities sector, which outperformed the Index during the annual period, and having underweighted allocation to the non-corporate credit sector, which lagged the Index during the annual period, added value.

● At the end of the annual period, the Fund maintained overweighted allocations to the corporate credit, mortgage-backed securities and asset-backed securities sectors and underweighted allocations to the U.S.Treasury, agency securities and non-corporate credit sectors. The Fund also maintained its short duration relative to that of the Index.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Intermediate Bond Fund
U.S. Treasury Notes	42.7%
Corporate Bonds	37.6
Asset-Backed Securities	14.9
Federal National Mortgage Association	3.0
Money Market Fund	1.5
Regional Bond	0.3
	100.0%

P N C  F i x e d  I n c o m e  F u n d s

I N T E R M E D I A T E  B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years	5 Years	10 Years	Since   Inception	Max Sales Charge	Max CDSC		Total Fund  Operating  Expenses
Class I Shares		12/20/89		1.09	%	1.33%	2.06%	4.12%	5.39%	N/A		N/A	0.53%
Class A Shares(1)		4/15/91		-3.62	%	-0.44%	0.88%	3.38%	4.93%	4.50%		0.50%(4)	0.81%
Class C Shares		5/30/00		-0.77	%(1)	0.36%	1.06%	3.09%	4.47%	N/A		1.00%	1.53%
Barclays Intermediate U.S. Government/Credit Bond Index				2.24	%	2.05%	2.57%	4.35%	5.79%	N/A		N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Barclays Intermediate U.S. Government/Credit Bond Index, an unmanaged index representative of intermediate term bonds, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than shown here. Performance data current to the most recent month-end is available at pncfunds.com.

168

P N C  F i x e d  I n c o m e  F u n d s

L I M I T E D  M A T U R I T Y  B O N D  F U N D   O V E R  V I E W    ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2004

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

169

PNC Limited Maturity Bond Fund seeks to provide current income as well as preservation of capital by investing primarily in a diversified portfolio of investment-grade fixed income securities.

How did the Fund perform during the annual period?

During the annual period, PNC Limited Maturity Bond Fund returned -1.09% to Class C Shares investors⁽¹⁾ and 0.64% to Class I Shares investors. The Fund’s benchmark, the Bank of America Merrill Lynch 1-3 Year U.S. Corporate/Government Index⁽²⁾ (the “Index”), returned 0.97%.

What factors most significantly affected the Fund’s performance during the annual period?

● Sector allocation overall made the most positive contribution to the Fund’s results during the annual period. In particular, having overweighted allocation to the corporate, which outperformed the Index during the annual period, and an underweighted exposure to the U.S. Treasury sector, which lagged the Index during the annual period, boosted relative performance.

● Overweighted allocations to mortgage-backed securities and asset-backed securities, which each outpaced the Index, also added value.

● Issue selection in the corporate credit sector also contributed positively.

● Duration and yield curve positioning had a rather neutral impact on Fund results during the annual period. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

● At the end of the annual period, the Fund maintained overweighted allocations to the corporate credit, asset-backed securities and mortgage-backed securities sectors and underweighted allocations to the U.S.Treasury, agency securities and non-corporate credit sectors.The Fund also maintained its short duration relative to that of the Index given the asymmetric risk profile of the short-term end of the yield curve, or spectrum of maturities.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments for the Fund.

Limited Maturity Bond Fund
U.S. Treasury Notes	36.7	%
Corporate Bonds	33.0
Asset-Backed Securities	22.0
Collateralized Mortgage Obligations	4.6
Federal National Mortgage Association	2.3
Money Market Fund	1.0
Federal Home Loan Mortgage Corporation	0.4
	100.0	%

P N C  F i x e d  I n c o m e  F u n d s

L I M I T E D  M A T U R I T Y  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

		Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year	3 Years	5 Years	10 Years	Since Inception	Max Sales Charge	Max CDSC	Total Fund Operating Expenses
Class I Shares	7/7/94		0.64%	0.57%	0.66%	2.53%	3.71%	N/A	N/A	0.48%
Class A Shares(1)	9/9/94		-1.62%	-0.18%	0.12%	2.12%	3.44%	2.00%	0.25%(4)	0.76%
Class C Shares	1/27/00		-1.09%(1)	-0.02%	-0.05%	1.66%	2.79%	N/A	1.00%	1.48%
BofA Merrill Lynch1-3 Year U.S. Corporate/Government Index			0.97%	0.99%	1.04%	2.76%	4.13%	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The BofA Merrill Lynch 1-3 Year U.S. Corporate/Government Index, an unmanaged, market capitalization weighted index including U.S. Treasury and agency bonds and U.S. investment-grade corporate bonds, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

170

P N C  F i x e d  I n c o m e  F u n d s

T O T A L  R E T U R N  A D V A N T A G E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2004

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

171

PNC Total Return Advantage Fund seeks to provide current income as well as capital appreciation by investing primarily in a diversified portfolio of investment-grade fixed income securities.

How did the Fund perform during the annual period?

During the annual period, PNC Total Return Advantage Fund returned -0.75% to Class C Shares investors⁽¹⁾ and 1.32% to Class I Shares investors. The Fund’s benchmark, the Barclays U.S. Aggregate Bond Index⁽²⁾ (the “Index”), returned 2.99%.

What factors most significantly affected the Fund’s performance during the annual period?

● Issue selection within the investment-grade corporate credit sector was the primary detractor from relative results. Holdings in the energy and materials industries were particularly weak performers during the annual period.

● Sector allocation overall also dampened the Fund’s relative results. More specifically, having an overweighted allocation to the high-yield corporate credit sector, which underperformed the Index, detracted. This more than offset the positive contribution made by having an overweighted allocation to asset-backed securities, which outpaced the Index during the annual period, and having an underweighted allocation to the non-corporate credit sector, which lagged the Index during the annual period.

● Duration and yield curve positioning detracted from the Fund’s relative results, albeit to a more modest degree. The Fund had a shorter duration than that of the Index, which detracted from relative performance as U.S.Treasury yields at the intermediate and longer-term segments of the yield curve, or spectrum of maturities, declined during the annual period. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

● At the end of the annual period, the Fund maintained overweighted allocations to the high-yield corporate credit and asset-backed securities sectors and underweighted allocations to the U.S. Treasury, agency securities and non-corporate credit sectors. The Fund also maintained its short duration relative to that of the Index.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments before short-term investments purchased with collateral from securities loaned.

Total Return Advantage Fund
Corporate Bonds	33.8	%
Federal National Mortgage Association	23.2
U.S. Treasury Notes	22.9
Asset-Backed Securities	7.4
U.S. Treasury Bonds	5.3
Federal Home Loan Mortgage Corporation	2.6
Government National Mortgage Association	2.5
Money Market Fund	1.8
Transportation Revenue Bond	0.5
Commercial Mortgage-Backed Security	–*
	100.0	%
* Amount represents less than 0.1%.

P N C  F i x e d  I n c o m e  F u n d s

T O T A L  R E T U R N  A D V A N T A G E  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years	5 Years	10 Years	Since Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares		3/1/98		1.32	%	2.00%	2.97%	5.11%	5.04%	N/A	N/A	0.56%	0.53%
Class A Shares(1)		9/30/02		-3.54	%	0.19%	1.74%	4.26%	4.33%	4.50%	0.50%(4)	0.84%	0.81%
Class C Shares		9/30/02		-0.75	%(1)	0.97%	1.93%	4.09%	3.99%	N/A	1.00%	1.56%	1.53%
Barclays U.S. Aggregate Bond Index				2.99	%	2.91%	3.33%	4.97%	5.25%	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The Barclays U.S. Aggregate Bond Index, an unmanaged market value weighted index of fixed income securities, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

172

P N C  F i x e d  I n c o m e  F u n d s

U L T R A  S H O R T  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

Sean T. Rhoderick, CFA

Managing Director and

Chief Investment Officer,

Taxable Fixed Income

Portfolio Manager

Since 2009

Guarantees by the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in the Fund is subject to interest rate risk, which is the possibility that the Fund’s yield will decline due to falling interest rates. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

173

PNC Ultra Short Bond Fund seeks to obtain high current income while preserving capital by investing primarily in a diversified portfolio of investment-grade fixed income securities.

How did the Fund perform during the annual period?

During the annual period, PNC Ultra Short Bond Fund returned -0.80% to Class A Shares investors⁽¹⁾ and 0.48% to Class I Shares investors. The Fund’s benchmark, the Bank of America Merrill Lynch 1-Year Treasury Index⁽²⁾ (the “Index”), returned 0.37%.

What factors most significantly affected the Fund’s performance during the annual period?

● Sector allocation overall contributed most positively to the Fund’s performance during the annual period, with an overweighted allocation to the corporate credit sector helping most. Overweighted allocations to mortgage-backed securities and asset-backed securities, which each outpaced the Index, also added value.

● Duration and yield curve positioning had a modest, yet positive, impact on the Fund’s results during the annual period. Shorter-term U.S.Treasury yields rose, and the Fund was positioned with a shorter duration than that of the Index. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

● There were no significant detractors from the Fund’s results during the annual period.

● At the end of the annual period, we continued to favor the corporate credit and structured product sectors for the Fund due to what we considered to be favorable fundamentals and relative value compared to the U.S.Treasury sector.The Fund also maintained its short duration relative to that of the Index given the asymmetric risk profile of the short-term end of the yield curve, or spectrum of maturities.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Ultra Short Bond Fund
U.S. Treasury Notes	42.9	%
Corporate Bonds	32.5
Asset-Backed Securities	20.2
Collateralized Mortgage Obligations	3.6
Money Market Fund	0.8
	100.0	%

P N C  F i x e d  I n c o m e  F u n d s

U L T R A  S H O R T  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception		Max Sales Charge			Max CDSC		Total Fund Operating Expenses
Class I Shares		12/2/02		0.48	%		0.29	%		0.30	%		1.82	%		1.87%		N/A			N/A		0.33%
Class A Shares(1)		1/6/03		-0.80	%		-0.31	%		-0.17	%		1.47	%		1.54%		1.00	%		N/A		0.61%
BofA Merrill Lynch 1-Year Treasury Index				0.37	%		0.29	%		0.30	%		1.69	%		1.72%		N/A			N/A		N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum applicable sales charge.

⁽²⁾  The BofA Merrill Lynch 1-Year Treasury Index, an unmanaged, market capitalization weighted index including U.S. Treasuries, is not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for its Class I and Class A Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception. Since inception return for the benchmark reflects the closest month end to the inception date of Class I Shares of the Fund.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than shown here. Performance data current to the most recent month-end is available at pncfunds.com.

174

P N C  T a x  E x e m p t  B o n d  F u n  d s

I N T E R M E D I A T E  T A X  E X E M  P T  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

Adam Mackey

Managing Director,

Municipal Fixed Income

Portfolio Manager

Since 2009

Guarantees, if any, by municipal issuers or the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in a tax-exempt fund is subject to interest rate risk, which is the possibility that the yield of the Fund will decline due to falling interest rates. For some investors, income may be subject to the federal alternative minimum tax (AMT) and/or to state or local taxes. Capital gains are subject to federal, state and local taxes. 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 shares of the Fund.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

175

PNC Intermediate Tax Exempt Bond Fund seeks to provide high current income while preserving capital that is exempt from federal income tax by investing in a variety of municipal debt securities issued by or on behalf of states, territories and possessions of the United States, the District of Columbia and their political subdivisions, agencies, instrumentalities and authorities.

How did the Fund perform during the annual period?

During the annual period, PNC Intermediate Tax Exempt Bond Fund returned 3.09% to Class C Shares investors⁽¹⁾ and 5.03% to Class I Shares investors. The Fund’s benchmark, the S&P Municipal Bond Intermediate Index⁽²⁾ (the “Index”), returned 5.40%.

What factors most significantly affected the Fund’s performance during the annual period?

● Detracting most from the Fund’s relative performance were underweighted allocations to bonds of California and New York, which overall outpaced the Index during the annual period.

● From a credit quality perspective, having an underweight to AA-rated bonds dampened the Fund’s relative results most.

● From a sector perspective, positioning in the tax-backed and IDR/PCF (Industrial Development Revenue/Pollution Control Revenue) bond sectors detracted from relative performance most.

● Duration and yield curve position overall detracted, albeit modestly, from the Fund’s results during the annual period. We seek to match the portfolio option-adjusted duration (“OAD”) to that of the Index, though we did adjust the Fund’s duration during the annual period as market conditions shifted. Duration is a measure of the Fund’s sensitivity to changes in interest rates. As for yield curve positioning, we seek to match the Fund’s key rate duration measures (“KDURs”) to those of the Index.

● Positions in an Indiana higher education bond, a Kansas healthcare bond, a California appropriate bond, a New Jersey toll road bond and an Illinois state general obligation bond were the biggest individual disappointments.

● On the positive side, having overweights to A-rated and BBB-rated bonds contributed most favorably to the Fund’s relative performance during the annual period.

● Sector allocation overall further boosted the Fund’s relative results, primarily positioning in healthcare and higher education.

● Security selection among and overweights to Florida and Illinois bonds added value as well.

● Amongst individual holdings, positions in an Indiana healthcare bond, a Texas public power bond, an Indiana higher education bond, a Georgia airport bond and an Illinois state general obligation performed especially well.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Intermediate Tax Exempt Bond Fund
Refunding Bonds	36.9	%
Education Revenue Bonds	15.0
Transportation Revenue Bonds	12.5
Industrial/Development Revenue Bonds	7.7
Prerefunded & Escrowed to Maturity	7.0
Other Revenue Bonds	6.4

Intermediate Tax Exempt Bond Fund
Hospital/Nursing Home Revenue Bonds	6.2
Refunding Notes	2.8
General Obligations	2.1
Utility Revenue Bonds	1.9
Public Facilities Revenue Bonds	1.5
	100.0	%

P N C  T a x  E x e m p t  B o n d  F u n d s

I N T E R M E D I A T E  T A X  E X E M P T  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

		Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year	3 Years	5 Years	10 Years	Since Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Gross Fund Operating Expenses (5)
Class I Shares	3/1/98		5.03%	3.59%	4.19%	4.42%	4.20%	N/A	N/A	0.61%	0.53%
Class A Shares(1)	9/30/02		1.63%	2.41%	3.39%	3.72%	3.58%	3.00%	0.50%(4)	0.89%	0.81%
Class C Shares	9/30/02		3.09%(1)	2.62%	3.21%	3.32%	3.12%	N/A	1.00%	1.61%	1.53%
S&P Municipal Bond Intermediate Index			5.40%	3.72%	4.52%	5.04%	N/A(6)	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The S&P Municipal Bond Intermediate Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). The maturity based sub-indices classify the bonds included in each respective sub-index by minimum term maturity as of the rebalancing reference date. The state level municipal bond indices consist of bonds that have been issued by municipalities or municipal authorities within the 50 states, the District of Columbia, Puerto Rico and the U.S.Virgin Islands.These indices are not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

⁽⁶⁾  The benchmark was launched subsequent to the inception date of Class I Shares of the Fund.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

176

P N C  T a x  E x e m p t  B o n d  F u n d s

M A R Y L A N D  T A X  E X E M P T  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

Adam Mackey

Managing Director,

Municipal Fixed Income Portfolio Manager

Since 2007

Guarantees, if any, by municipal issuers or the State of Maryland, the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in a tax-exempt fund is subject to interest rate risk, which is the possibility that the yield of the Fund will decline due to falling interest rates. For some investors, income may be subject to the federal alternative minimum tax (AMT) and/or to state or local taxes. Capital gains are subject to federal, state and local taxes. 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 shares of the Fund.

The Fund’s focus on investments in securities of municipalities located in a single state makes the Fund susceptible to economic, political and regulatory events that affect that state. The 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

177

PNC Maryland Tax Exempt Bond Fund seeks to provide a high level of interest income that is exempt from federal and Maryland state and local income taxes by investing in investment-grade municipal bonds and other municipal obligations issued by the State of Maryland, its counties, municipalities and other taxing districts, and other issuers located outside of Maryland that are exempt from federal income taxes, federal alternative minimum tax and Maryland state and local income taxes.

How did the Fund perform during the annual period?

During the annual period, PNC Maryland Tax Exempt Bond Fund returned 2.12% to Class C Shares investors⁽¹⁾ and 4.19% to Class I Shares investors. The Fund’s primary benchmark, the S&P Municipal Bond Intermediate Index⁽²⁾ (the“Index”), returned 5.40%. The Fund’s secondary benchmark, the S&P Maryland Municipal Bond Index⁽²⁾, returned 4.69%.

What factors most significantly affected the Fund’s performance during the annual period?

● Duration and yield curve positioning overall detracted most from the Fund’s results during the annual period. We seek to match the portfolio option-adjusted duration (“OAD”) to that of the Index. On average, the OAD of the Fund was shorter than that of the Index, which detracted from relative performance as intermediate and longer-term interest rates declined during the annual period as a whole. Duration is a measure of the Fund’s sensitivity to changes in interest rates. As for yield curve positioning, we seek to match the Fund’s key rate duration measures (“KDURs”) to those of the Index.

● From a sector perspective, having underweights in the transportation, utility and tax-backed sectors dampened relative results.

● Having underweighted allocations to AA-rated bonds and BBB-rated bonds compared to the Index further detracted from the Fund’s relative performance.

● Positions in a Maryland prerefunded/escrowed-to-maturity bond, a Washington, Maryland local general obligation bond, a Maryland dedicated tax bond and a Maryland higher education bond were the biggest individual disappointments.

● On the positive side, sector allocation overall contributed most favorably to the Fund’s relative performance during the annual period, primarily positioning in healthcare.

● Having overweights to AAA-rated bonds and A-rated bonds further boosted the Fund’s relative results.

● Positions in two Maryland healthcare bonds, two Maryland land secured bonds and a Baltimore County, Maryland local general obligation bond added particular value.

The table below presents portfolio holdings as of May 31, 2015 as a percentage of total investments.

Maryland Tax Exempt Bond Fund
Refunding Bonds	32.3	%
General Obligations	21.9
Hospital/Nursing Home Revenue Bonds	19.7
Other Revenue Bonds	6.2
Public Facilities Revenue Bonds	5.5
Education Revenue Bonds	5.4
Transportation Revenue Bonds	3.5
Prerefunded & Escrowed to Maturity	2.9
Water/Sewer Revenue Bonds	2.6
	100.0	%

P N C  T a x  E x e m p t  B o n d  F u n d s

M A R Y L A N D  T A X  E X E M P T  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year			3 Years			5 Years			10 Years			Since Inception			Max Sales Charge			Max CDSC			Total Gross Fund Operating Expenses (5)			Total Net Fund Operating Expenses (5)
Class I Shares		6/2/92		4.19	%		2.52	%		3.21	%		3.71	%		4.37	%		N/A			N/A			0.61	%		0.53	%
Class A Shares(1)		9/30/02		0.80	%		1.28	%		2.34	%		3.05	%		3.65	%		3.00	%		0.50	%(4)		0.89	%		0.81	%
Class C Shares		9/30/02		2.12	%(1)		1.57	%		2.18	%		2.68	%		3.19	%		N/A			1.00	%		1.61	%		1.53	%
S&P Municipal Bond Intermediate Index				5.40	%		3.72	%		4.52	%		5.04	%		N/A	(6)		N/A			N/A			N/A			N/A
S&P Maryland Municipal Bond Index				4.69	%		3.34	%		4.20	%		4.41	%		N/A	(6)		N/A			N/A			N/A			N/A

⁽¹⁾ Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾ The S&P Municipal Bond Intermediate Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). The maturity based sub-indices classify the bonds included in each respective sub-index by minimum term maturity as of the rebalancing reference date. The state level municipal bond indices consist of bonds that have been issued by municipalities or municipal authorities within the 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. These indices are not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾ The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception.

⁽⁴⁾ This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾ Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

⁽⁶⁾  The benchmarks were launched subsequent to the inception date of Class I Shares of the Fund.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

178

P N C  T a x  E x e m p t  B o n d  F u n d s

O H I O  I N T E R M E D I A T E  T A X  E X E M P T  B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

Adam Mackey

Managing Director,

Municipal Fixed Income

Portfolio Manager

Since 2009

Guarantees, if any, by municipal issuers or the State of Ohio, the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in a tax-exempt fund is subject to interest rate risk, which is the possibility that the yield of the Fund will decline due to falling interest rates. For some investors, income may be subject to the federal alternative minimum tax (AMT) and/or to state or local taxes. Capital gains are subject to federal, state and local taxes. 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 shares of the Fund.

The Fund’s focus on investments in securities of municipalities located in a single state makes the Fund susceptible to economic, political and regulatory events that affect that state. The 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.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

179

PNC Ohio Intermediate Tax Exempt Bond Fund seeks to provide current income exempt from regular federal income tax and, to the extent possible, from Ohio personal income tax, as is consistent with the preservation of capital, by investing in debt securities issued by the State of Ohio, its political subdivisions and their agencies and instrumentalities that generate income exempt from federal income taxes (including the federal alternative minimum tax) and Ohio personal income taxes.

How did the Fund perform during the annual period?

During the annual period, PNC Ohio Intermediate Municipal Bond Fund returned 2.40% to Class C Shares investors⁽¹⁾ and 4.42% to Class I Shares investors. The Fund’s primary benchmark, the S&P Municipal Bond Intermediate Index⁽²⁾ (the “Index”), returned 5.40%. The Fund’s secondary benchmark, the S&P Ohio Municipal Bond Index⁽²⁾, returned 8.00%.

What factors most significantly affected the Fund’s performance during the annual period?

● Duration and yield curve positioning overall detracted most from the Fund’s results during the annual period. We seek to match the portfolio option-adjusted duration (“OAD”) to that of the Index. On average, the OAD of the Fund was slightly shorter than that of the Index, which hurt as intermediate and longer-term interest rates declined during the annual period as a whole. Duration is a measure of the Fund’s sensitivity to changes in interest rates. As for yield curve positioning, we seek to match the Fund’s key rate duration measures (“KDURs”) to those of the Index.

● Underweighted exposure to AA-rated, A-rated and BBB-rated bonds, which outpaced the Index during the annual period, further detracted from the Fund’s relative performance.

● From a sector perspective, underweighted positioning in the tax-backed and transportation bond sectors, which outpaced the Index during the annual period, dampened relative results.

● Positions in a Dublin, Ohio local general obligation bond, two Ohio prerefunded/escrowed-to-maturity bonds, an Ohio higher education bond and an Ohio water/sewer bond were the biggest individual disappointments.

● On the positive side, sector allocation and security selection overall boosted the Fund’s relative results, primarily selection and overweights in the healthcare and utility sectors.

● Having an overweight to AAA-rated bonds, which outpaced the Index during the annual period, also contributed positively to relative results.

● Positions in two Ohio higher education bonds, two Ohio water/sewer bonds and an Ohio healthcare bond added particular value.

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Ohio Intermediate Tax Exempt Bond Fund
Refunding Bonds	21.2	%
Hospital/Nursing Home Revenue Bonds	17.4
Education Revenue Bonds	17.2
General Obligations	12.3
Utility Revenue Bonds	9.3
Prerefunded & Escrowed to Maturity	7.0
Water/Sewer Revenue Bonds	6.6
Industrial/Development Revenue Bonds	5.4
Other Revenue Bonds	3.6
	100.0	%

P N C  T a x  E x e m p t  B o n d  F u n d s

O H I O  I N T E R M E D I A T E  T A X  E X E M P T  B O N D  F U N D  O V E R V I E W  ( U n a u d i t e d )

		Average Annual Total Returns as of 05/31/16(3)
	Date of Inception		1 Year	3 Years	5 Years	10 Years	Since Inception	Max Sales Charge	Max CDSC	Total Fund Operating Expenses
Class I Shares	1/5/90		4.42%	2.66%	3.50%	4.09%	4.68%	N/A	N/A	0.61%
Class A Shares(1)	4/15/91		0.97%	1.40%	2.64%	3.51%	4.39%	3.00%	0.50%(4)	0.89%
Class C Shares	6/23/00		2.40%(1)	1.68%	2.50%	3.06%	3.65%	N/A	1.00%	1.61%
S&P Municipal Bond Intermediate Index			5.40%	3.72%	4.52%	5.04%	N/A(5)	N/A	N/A	N/A
S&P Ohio Municipal Bond Index			8.00%	4.93%	6.38%	5.04%	N/A(5)	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge. Performance of Class C Shares assumes the deduction of the maximum applicable contingent deferred sales charge (“Max CDSC”) on the implied disposal of shares at the end of the period.

⁽²⁾  The S&P Municipal Bond Intermediate Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). The maturity based sub-indices classify the bonds included in each respective sub-index by minimum term maturity as of the rebalancing reference date. The state level municipal bond indices consist of bonds that have been issued by municipalities or municipal authorities within the 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. These indices are not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for Class I and Class C Shares only. The performance of Class A Shares may be greater or less than that shown in the graph based on the difference in sales charges and fees paid by the shareholders investing in those Classes. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception.

⁽⁴⁾  This Max CDSC applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  The benchmarks were launched subsequent to the inception date of Class I Shares of the Fund.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

180

P N C  T a x  E x e m p t  B o n d  F u n d s

T A X  E X E M P T  L I M I T E D  M A T U R I T Y  B O N D  F U N D  O V E R V I E W     ( U n a u d i t e d )

Adam Mackey

Managing Director,

Municipal Fixed Income

Portfolio Manager

Since 2007

Guarantees, if any, by municipal issuers or the U.S. government, its agencies, or instrumentalities relate only to the payment of principal or interest of the portfolio securities and not the shares of the Fund. An investment in a tax-exempt fund is subject to interest rate risk, which is the possibility that the yield of the Fund will decline due to falling interest rates. For some investors, income may be subject to the federal alternative minimum tax (AMT) and/or to state or local taxes. Capital gains are subject to federal, state and local taxes. 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 shares of the Fund.

Please see the Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

181

PNC Tax Exempt Limited Maturity Bond Fund seeks to provide a high level of income that is exempt from regular federal income tax, as is consistent with relative protection of capital, by investing in municipal bonds and other municipal obligations that pay interest that is exempt from both regular federal income tax and federal alternative minimum tax.

How did the Fund perform during the annual period?

During the annual period, PNC Tax Exempt Limited Maturity Bond Fund returned -1.04% to Class A Shares investors⁽¹⁾ and 2.19% to Class I Shares investors. The Fund’s benchmark, the S&P Municipal Bond Short Intermediate Index⁽²⁾ (the “Index”), returned 2.95%.

What factors most significantly affected the Fund’s performance during the annual period?

● Duration and yield curve positioning overall detracted most from the Fund’s results during the annual period. We seek to match the portfolio option-adjusted duration (“OAD”) to that of the Index. On average, the OAD of the Fund was shorter than that of the Index, which detracted from relative performance as intermediate and longer-term interest rates declined during the annual period as a whole, even though shorter-term interest rates generally rose during the annual period. Duration is a measure of the Fund’s sensitivity to changes in interest rates. As for yield curve positioning, we seek to match the Fund’s key rate duration measures (“KDURs”) to those of the Index.

● The Fund’s selection among and underweighted allocation to AA-rated bonds, which outpaced the Index during the annual period, also detracted from its performance relative to the Index.

● Further detracting from the Fund’s relative performance were underweighted allocations to bonds of California and New York, which, overall, outpaced the Index during the annual period.

● From a sector perspective, positioning in the tax-backed and utility bond sectors dampened relative results.

● Positions in several housing bonds — three from Tennessee and two from Massachusetts — were the biggest individual disappointments.

● On the positive side, having an overweight to A-rated bonds contributed most favorably to the Fund’s relative performance during the annual period.

● Sector allocation overall further boosted the Fund’s relative results, primarily overweights to healthcare and higher education. Individual security selection within each of these sectors added value as well.

● Having overweights to and effective security selection among Florida and Illinois bonds contributed positively to the Fund’s relative results.

● Two Florida dedicated tax bonds, a Florida higher education bond, a Pennsylvania higher education bond and an Illinois state general obligation bond were amongst those individual positions that performed especially well during the annual period.

P N C  T a x  E x e m p t  B o n d  F u n d s

T A X  E X E M P T  L I M I T E D  M A T U R I T Y  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

The table below presents portfolio holdings as of May 31, 2016 as a percentage of total investments.

Tax Exempt Limited Maturity Bond Fund
Refunding Bonds	33.7	%
Hospital/Nursing Home Revenue Bonds	11.8
General Obligations	10.5
Transportation Revenue Bonds	10.4
Education Revenue Bonds	8.3
Prerefunded & Escrowed to Maturity	4.8
Other Revenue Bonds	4.3
Industrial/Development Revenue Bonds	4.0
Refunding Notes	3.5
Public Facilities Revenue Bonds	2.5
Anticipation Notes	2.3
Water/Sewer Revenue Bonds	2.0
Utility Revenue Bonds	1.9
	100.0	%

182

P N C  T a x  E x e m p t  B o n d  F u n d s

T A X  E X E M P T  L I M I T E D  M A T U R I T Y  B O N D  F U N D  O V E R V I E W    ( U n a u d i t e d )

			Average Annual Total Returns as of 05/31/16(3)
	Date of Inception			1 Year	3 Years	5 Years	10 Years	Since Inception	Max Sales Charge	Max CDSC	Total Gross Fund Operating Expenses (5)	Total Net Fund Operating Expenses (5)
Class I Shares		3/1/98		2.19%	1.37%	1.71%	2.74%	2.95%	N/A	N/A	0.55%	0.53%
Class A Shares(1)		9/30/02		-1.04%	0.07%	0.83%	2.09%	2.34%	3.00%	0.50%(4)	0.83%	0.81%
S&P Municipal Bond Short Intermediate Index				2.95%	2.12%	2.56%	3.75%	N/A(6)	N/A	N/A	N/A	N/A

⁽¹⁾  Performance of Class A Shares assumes the deduction of the maximum sales charge.

⁽²⁾  The S&P Municipal Bond Short Intermediate Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). The maturity based sub-indices classify the bonds included in each respective sub-index by minimum term maturity as of the rebalancing reference date. The state level municipal bond indices consist of bonds that have been issued by municipalities or municipal authorities within the 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. These indices are not available for direct investment. Unlike the performance of a mutual fund, the performance of an index assumes no taxes, transaction costs, investment advisory fees or other expenses.

⁽³⁾  The graph provides the return of a hypothetical $10,000 investment in the Fund for the most recent 10-year period for its Class I and Class A Shares. Returns reflect reinvestment of dividends and capital gains and the deduction of applicable sales charge (including the contingent deferred sales charge appropriate to each period), operating expenses and fees, net of fee waivers and expense reimbursements, as applicable. Without such fee waivers and expense reimbursements, performance of the Fund would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For a share class of the Fund that commenced operations after the inception date of the Fund’s Class I Shares, performance information shown for the period before inception of that share class includes the performance of Class I Shares, adjusted to reflect that share class’ fees, expenses and maximum sales charges, through the date of that share class’ inception.

⁽⁴⁾  This maximum applicable contingent deferred sales charge (“Max CDSC”) applies only to purchases of $1,000,000 or more of Class A Shares if the shares are redeemed within 12 months of the date of purchase.

⁽⁵⁾  Total Fund Operating Expenses shown, both gross and net of waivers, reimbursements and payments by affiliate, where applicable, reflect expenses from the September 28, 2015 Prospectus, as amended from time to time, and may differ from those found within the Expense Tables and Financial Highlights. The Total Fund Operating Expenses reflect the Adviser’s contractual obligation to waive management fees and reimburse expenses through at least February 28, 2017, except that this obligation may be terminated by the Board at any time.

⁽⁶⁾  The benchmark was launched subsequent to the inception date of Class I Shares of the Fund.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at pncfunds.com.

183

P N C  F i x e d  I n c o m e   F u n d s

O V E R V I E W    ( U n a u d i t e d )

At May 31, 2016, the following percentages of each Fund’s net assets were insured by bond insurers.

Bond Insurer	Intermediate Tax Exempt Bond	Maryland Tax Exempt Bond	Ohio Intermediate Tax Exempt Bond	Tax Exempt Limited Maturity Bond
AGM	6.9%	1.9%	–%	1.5%
AMBAC	2.5	–	–	2.9
GNMA/FNMA/FHLMC	1.4	–	5.3	–
NATL-RE	–	4.0	–	0.4
PSF-GTD	–	–	–	5.6
Total	10.8%	5.9%	5.3%	10.4%

184

P N C  F i x e d  I n c o m e  F u n d s  a n d  T a x  E x e m p t  B o n d  F u n d s

E X P L A N A T I O N  O F  E X P E N S E  T A B L E S  ( U n a u d i t e d )

The expenses shown in the Expense Tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), including contingent deferred sales charges, all of which are described in the Prospectus. If these transactional costs were included, your costs would be higher. The “Annualized Expense Ratio” reflects the actual expenses, net of fee waivers, where applicable, for the six-month period December 1, 2015 to May 31, 2016 and may be different from the expense ratio in the Financial Highlights which is for the fiscal year ended May 31, 2016. The “Annualized Expense Ratio” does not reflect Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were included, expenses would be higher.

All mutual funds have operating expenses. As a shareholder of a Fund, you incur operating expenses, including investment advisory fees, distribution (12b-1) fees and shareholder services fees, where applicable, and other Fund expenses. Such expenses, which are deducted from a Fund’s gross income, directly reduce the investment return of a Fund. A Fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The Expense Tables provided on the following pages are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the six-month period shown and held for the entire six-month period (December 1, 2015 to May 31, 2016).

The Expense Table that appears for your Fund below illustrates your Fund’s costs in two ways.

● Actual Expenses. This section helps you to estimate the actual expenses after fee waivers that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Class of the Fund under the heading “Expenses Paid During Period.”

● Hypothetical Example for Comparison Purposes. This section is intended to help you compare your Fund’s costs with those of other mutual funds. It is based on your Fund’s actual expense ratio and assumes that your Fund had an annual return of 5% before expenses during the period shown. In this case — because the return used is not your Fund’s actual return — the results may not be used to estimate your actual ending account value or expenses you paid during this period. The example is useful in making comparisons between your Fund and other funds because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on an assumed annual 5% return. You can assess your Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

	Beginning Account Value 12/01/15	Ending Account Value 05/31/16	Annualized Expense Ratio		Expenses Paid During Period(1)
Bond Fund
Actual
Class I	$1,000.00	$1,025.12	0.53	%	$2.68
Class A	1,000.00	1,024.03	0.74		3.76
Class C	1,000.00	1,020.28	1.49		7.51
Hypothetical(2)
Class I	1,000.00	1,022.35	0.53		2.68
Class A	1,000.00	1,021.28	0.74		3.76
Class C	1,000.00	1,017.57	1.49		7.50
Government Mortgage Fund
Actual
Class I	$1,000.00	$1,016.03	0.65	%	$3.29
Class A	1,000.00	1,014.70	0.91		4.60
Class C	1,000.00	1,012.09	1.64		8.27
Hypothetical(2)
Class I	1,000.00	1,021.74	0.65		3.30
Class A	1,000.00	1,020.44	0.91		4.61
Class C	1,000.00	1,016.78	1.64		8.29
High Yield Bond Fund
Actual
Class I	$1,000.00	$1,054.39	0.75	%	$3.85
Class A	1,000.00	1,053.27	1.01		5.21
Hypothetical(2)
Class I	1,000.00	1,021.26	0.75		3.78
Class A	1,000.00	1,019.93	1.01		5.12

	Beginning Account Value 12/01/15	Ending Account Value 05/31/16	Annualized Expense Ratio		Expenses Paid During Period(1)
Intermediate Bond Fund
Actual
Class I	$1,000.00	$1,016.51	0.53	%	$2.68
Class A	1,000.00	1,016.16	0.78		3.94
Class C	1,000.00	1,012.69	1.46		7.36
Hypothetical(2)
Class I	1,000.00	1,022.35	0.53		2.68
Class A	1,000.00	1,021.09	0.78		3.95
Class C	1,000.00	1,017.69	1.46		7.37
Limited Maturity Bond Fund
Actual
Class I	$1,000.00	$1,007.02	0.50	%	$2.49
Class A	1,000.00	1,006.89	0.72		3.61
Class C	1,000.00	1,003.01	1.29		6.48
Hypothetical(2)
Class I	1,000.00	1,022.52	0.50		2.51
Class A	1,000.00	1,021.41	0.72		3.63
Class C	1,000.00	1,018.53	1.29		6.53
Total Return Advantage Fund
Actual
Class I	$1,000.00	$1,027.86	0.53	%	$2.68
Class A	1,000.00	1,025.57	0.80		4.05
Class C	1,000.00	1,021.94	1.50		7.56
Hypothetical(2)
Class I	1,000.00	1,022.36	0.53		2.67
Class A	1,000.00	1,021.01	0.80		4.04
Class C	1,000.00	1,017.53	1.50		7.54

⁽¹⁾  Expenses are equal to each Class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) in the most recent fiscal half-year, then divided by 366.

⁽²⁾  Assumes annual return of 5% before expenses.

185

	Beginning Account Value 12/01/15	Ending Account Value 05/31/16	Annualized Expense Ratio		Expenses Paid During Period(1)
Ultra Short Bond Fund
Actual
Class I	$1,000.00	$1,004.98	0.31	%	$1.53
Class A	1,000.00	1,002.57	0.59		2.94
Hypothetical(2)
Class I	1,000.00	1,023.47	0.31		1.55
Class A	1,000.00	1,022.06	0.59		2.97
Intermediate Tax Exempt Bond Fund
Actual
Class I	$1,000.00	$1,029.46	0.53	%	$2.69
Class A	1,000.00	1,028.63	0.70		3.57
Class C	1,000.00	1,026.22	1.42		7.19
Hypothetical(2)
Class I	1,000.00	1,022.35	0.53		2.68
Class A	1,000.00	1,021.48	0.70		3.56
Class C	1,000.00	1,017.90	1.42		7.16
Maryland Tax Exempt Bond Fund
Actual
Class I	$1,000.00	$1,024.40	0.53	%	$2.68
Class A	1,000.00	1,023.01	0.81		4.07
Class C	1,000.00	1,019.83	1.42		7.19
Hypothetical(2)
Class I	1,000.00	1,022.35	0.53		2.68
Class A	1,000.00	1,020.98	0.81		4.07
Class C	1,000.00	1,017.89	1.42		7.18

	Beginning Account Value 12/01/15	Ending Account Value 05/31/16	Annualized Expense Ratio		Expenses Paid During Period(1)
Ohio Intermediate Tax Exempt Bond Fund
Actual
Class I	$1,000.00	$1,023.93	0.73	%	$3.68
Class A	1,000.00	1,022.45	1.03		5.18
Class C	1,000.00	1,018.89	1.73		8.71
Hypothetical(2)
Class I	1,000.00	1,021.37	0.73		3.67
Class A	1,000.00	1,019.88	1.03		5.18
Class C	1,000.00	1,016.38	1.73		8.70
Tax Exempt Limited Maturity Bond Fund
Actual
Class I	$1,000.00	$1,010.26	0.53	%	$2.66
Class A	1,000.00	1,009.92	0.79		3.97
Hypothetical(2)
Class I	1,000.00	1,022.35	0.53		2.68
Class A	1,000.00	1,021.05	0.79		4.00

⁽¹⁾  Expenses are equal to each Class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) in the most recent fiscal half-year, then divided by 366.

⁽²⁾  Assumes annual return of 5% before expenses.

186

P N C  F i x e d  I n c o m e  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.55		$	10.56		$	10.55		$	10.80		$	10.53		$	10.58		$	10.61		$	10.57		$	10.83		$	10.55
Net Investment Income(1)		0.19			0.18			0.18			0.20			0.30			0.17			0.15			0.18			0.18			0.28
Realized and Unrealized Gain (Loss) on Investments		0.04			0.04			0.04			(0.03	)		0.29			0.04			0.05			0.04			(0.05	)		0.30
Total from Investment Operations		0.23			0.22			0.22			0.17			0.59			0.21			0.20			0.22			0.13			0.58
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.21	)		(0.20	)		(0.20	)		(0.23	)		(0.32	)		(0.19	)		(0.20	)		(0.17	)		(0.20	)		(0.30	)
Distributions from Net Realized Gains		(0.13	)		(0.03	)		(0.01	)		(0.19	)		–			(0.13	)		(0.03	)		(0.01	)		(0.19	)		–
Total Distributions		(0.34	)		(0.23	)		(0.21	)		(0.42	)		(0.32	)		(0.32	)		(0.23	)		(0.18	)		(0.39	)		(0.30	)
Net Asset Value, End of Year	$	10.44		$	10.55		$	10.56		$	10.55		$	10.80		$	10.47		$	10.58		$	10.61		$	10.57		$	10.83
Total Return†		2.27	%		2.11	%		2.08	%		1.56	%		5.69	%		2.04	%		1.95	%		2.11	%		1.18	%		5.56	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	83,084		$	145,422		$	173,997		$	193,899		$	182,239		$	2,985		$	3,258		$	3,644		$	3,937		$	4,449
Ratio of Expenses to Average Net Assets		0.55	%		0.58	%		0.61	%		0.60	%		0.59	%		0.79	%		0.84	%		0.59	%(3)		0.88	%		0.81	%(4)
Ratio of Net Investment Income to Average Net Assets		1.87	%		1.69	%		1.73	%		1.87	%		2.87	%		1.62	%		1.43	%		1.75	%(3)		1.64	%		2.66	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.63	%		0.58	%		0.61	%		0.60	%		0.59	%		0.88	%		0.84	%		0.86	%		0.88	%		0.87	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.79	%		1.69	%		1.73	%		1.87	%		2.87	%		1.53	%		1.43	%		1.48	%		1.64	%		2.60	%
Portfolio Turnover Rate		111	%		66	%		86	%		71	%		58	%		111	%		66	%		86	%		71	%		58	%
	Bond Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.54		$	10.56		$	10.54		$	10.80		$	10.53
Net Investment Income(1)		0.09			0.07			0.07			0.10			0.20
Realized and Unrealized Gain (Loss) on Investments		0.05			0.03			0.05			(0.05	)		0.28
Total from Investment Operations		0.14			0.10			0.12			0.05			0.48
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.11	)		(0.09	)		(0.09	)		(0.12	)		(0.21	)
Distributions from Net Realized Gains		(0.13	)		(0.03	)		(0.01	)		(0.19	)		–
Total Distributions		(0.24	)		(0.12	)		(0.10	)		(0.31	)		(0.21	)
Net Asset Value, End of Year	$	10.44		$	10.54		$	10.56		$	10.54		$	10.80
Total Return†		1.39	%		1.01	%		1.16	%		0.46	%		4.65	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	256		$	264		$	300		$	286		$	308
Ratio of Expenses to Average Net Assets		1.52	%		1.58	%		1.61	%(3)		1.60	%		1.60	%
Ratio of Net Investment Income to Average Net Assets		0.89	%		0.70	%		0.69	%(3)		0.91	%		1.91	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.62	%		1.58	%		1.61	%		1.60	%		1.60	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.79	%		0.70	%		0.69	%		0.91	%		1.91	%
Portfolio Turnover Rate		111	%		66	%		86	%		71	%		58	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.27% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower. The voluntary commitment had no impact to Class C ratios.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.06% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

187

	Government Mortgage Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	9.30		$	9.29		$	9.35		$	9.70		$	9.67		$	9.29		$	9.30		$	9.35		$	9.70		$	9.66
Net Investment Income(1)		0.18			0.20			0.22			0.24			0.34			0.15			0.17			0.20			0.22			0.32
Realized and Unrealized Gain (Loss) on Investments		(0.03	)		0.05			(0.01	)		(0.29	)		0.07			(0.02	)		0.05			(0.01	)		(0.30	)		0.07
Total from Investment Operations		0.15			0.25			0.21			(0.05	)		0.41			0.13			0.22			0.19			(0.08	)		0.39
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.23	)		(0.24	)		(0.27	)		(0.30	)		(0.38	)		(0.21	)		(0.23	)		(0.24	)		(0.27	)		(0.35	)
Total Distributions		(0.23	)		(0.24	)		(0.27	)		(0.30	)		(0.38	)		(0.21	)		(0.23	)		(0.24	)		(0.27	)		(0.35	)
Net Asset Value, End of Year	$	9.22		$	9.30		$	9.29		$	9.35		$	9.70		$	9.21		$	9.29		$	9.30		$	9.35		$	9.70
Total Return†		1.66	%		2.77	%		2.30	%		(0.55	)%		4.27	%		1.39	%		2.36	%		2.13	%		(0.83	)%		4.15	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	42,625		$	50,345		$	51,269		$	87,433		$	88,197		$	9,239		$	9,878		$	10,888		$	8,505		$	11,882
Ratio of Expenses to Average Net Assets		0.69	%		0.73	%		0.71	%		0.66	%		0.65	%		0.96	%		1.01	%		0.90	%(3)		0.94	%		0.86	%(4)
Ratio of Net Investment Income to Average Net Assets		1.90	%		2.10	%		2.41	%		2.45	%		3.55	%		1.62	%		1.86	%		2.14	%(3)		2.31	%		3.33	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.80	%		0.73	%		0.71	%		0.66	%		0.65	%		1.07	%		1.01	%		0.98	%		0.94	%		0.93	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.79	%		2.10	%		2.41	%		2.45	%		3.55	%		1.51	%		1.86	%		2.06	%		2.31	%		3.26	%
Portfolio Turnover Rate		13	%		30	%		3	%		54	%		29	%		13	%		30	%		3	%		54	%		29	%
	Government Mortgage Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	9.28		$	9.28		$	9.34		$	9.68		$	9.65
Net Investment Income(1)		0.09			0.12			0.13			0.15			0.24
Realized and Unrealized Gain (Loss) on Investments		(0.02	)		0.03			(0.01	)		(0.29	)		0.07
Total from Investment Operations		0.07			0.15			0.12			(0.14	)		0.31
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.14	)		(0.15	)		(0.18	)		(0.20	)		(0.28	)
Total Distributions		(0.14	)		(0.15	)		(0.18	)		(0.20	)		(0.28	)
Net Asset Value, End of Year	$	9.21		$	9.28		$	9.28		$	9.34		$	9.68
Total Return†		0.76	%		1.64	%		1.29	%		(1.44	)%		3.23	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	744		$	1,185		$	1,638		$	2,920		$	3,906
Ratio of Expenses to Average Net Assets		1.69	%		1.73	%		1.71	%(3)		1.66	%		1.65	%
Ratio of Net Investment Income to Average Net Assets		1.00	%		1.28	%		1.46	%(3)		1.61	%		2.49	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.79	%		1.73	%		1.71	%		1.66	%		1.65	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.90	%		1.28	%		1.46	%		1.61	%		2.49	%
Portfolio Turnover Rate		13	%		30	%		3	%		54	%		29	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.08% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower. The voluntary commitment had no impact to Class C ratios.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.07% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

188

P N C  F i x e d  I n c o m e  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	High Yield Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	8.06		$	8.52		$	8.39		$	8.04		$	8.35		$	8.07		$	8.53		$	8.40		$	8.05		$	8.36
Net Investment Income(1)		0.42			0.40			0.42			0.46			0.55			0.39			0.38			0.40			0.44			0.53
Realized and Unrealized Gain (Loss) on Investments		(0.63	)		(0.36	)		0.13			0.54			(0.13	)		(0.62	)		(0.36	)		0.13			0.53			(0.13	)
Total from Investment Operations		(0.21	)		0.04			0.55			1.00			0.42			(0.23	)		0.02			0.53			0.97			0.40
Dividends from Net Investment Income		(0.42	)		(0.40	)		(0.42	)		(0.47	)		(0.55	)		(0.40	)		(0.38	)		(0.40	)		(0.44	)		(0.53	)
Distributions from Net Realized Gains		(0.07	)		(0.10	)		–			(0.18	)		(0.18	)		(0.07	)		(0.10	)		–			(0.18	)		(0.18	)
Total Distributions		(0.49	)		(0.50	)		(0.42	)		(0.65	)		(0.73	)		(0.47	)		(0.48	)		(0.40	)		(0.62	)		(0.71	)
Net Asset Value, End of Year	$	7.36		$	8.06		$	8.52		$	8.39		$	8.04		$	7.37		$	8.07		$	8.53		$	8.40		$	8.05
Total Return†		(2.36	)%		0.62	%		6.79	%		12.75	%		5.45	%		(2.58	)%		0.38	%		6.51	%		12.44	%		5.19	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	11,104		$	19,160		$	29,709		$	16,700		$	9,123		$	2,375		$	622		$	628		$	493		$	471
Ratio of Expenses to Average Net Assets		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		1.01	%		1.01	%		0.99	%(2)		1.01	%		1.01	%(3)
Ratio of Net Investment Income to Average Net Assets		5.68	%		4.88	%		5.05	%		5.52	%		6.80	%		5.29	%		4.66	%		4.81	%(2)		5.34	%		6.57	%(3)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.22	%		0.93	%		0.84	%		1.09	%		1.19	%		1.55	%		1.20	%		1.10	%		1.34	%		1.45	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		5.21	%		4.70	%		4.96	%		5.18	%		6.36	%		4.75	%		4.47	%		4.70	%		5.01	%		6.13	%
Portfolio Turnover Rate		46	%		40	%		59	%		35	%		32	%		46	%		40	%		59	%		35	%		32	%

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment represented a 0.02% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

⁽³⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which had no impact to Class A ratios.

See Notes to Financial Statements.

189

	Intermediate Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	11.06		$	11.07		$	11.26		$	11.48		$	11.38		$	11.06		$	11.09		$	11.28		$	11.49		$	11.40
Net Investment Income(1)		0.16			0.13			0.13			0.18			0.27			0.13			0.10			0.12			0.15			0.25
Realized and Unrealized Gain (Loss) on Investments		(0.04	)		0.03			0.02			0.04			0.23			(0.03	)		0.03			0.01			0.05			0.22
Total from Investment Operations		0.12			0.16			0.15			0.22			0.50			0.10			0.13			0.13			0.20			0.47
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.16	)		(0.13	)		(0.13	)		(0.19	)		(0.28	)		(0.13	)		(0.12	)		(0.11	)		(0.16	)		(0.26	)
Distributions from Net Realized Gains		(0.04	)		(0.04	)		(0.21	)		(0.25	)		(0.12	)		(0.04	)		(0.04	)		(0.21	)		(0.25	)		(0.12	)
Total Distributions		(0.20	)		(0.17	)		(0.34	)		(0.44	)		(0.40	)		(0.17	)		(0.16	)		(0.32	)		(0.41	)		(0.38	)
Net Asset Value, End of Year	$	10.98		$	11.06		$	11.07		$	11.26		$	11.48		$	10.99		$	11.06		$	11.09		$	11.28		$	11.49
Total Return†		1.09	%		1.47	%		1.42	%		1.93	%		4.43	%		0.92	%		1.20	%		1.16	%		1.73	%		4.11	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	290,793		$	331,466		$	361,838		$	378,963		$	397,082		$	3,885		$	4,159		$	4,991		$	5,565		$	6,298
Ratio of Expenses to Average Net Assets		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%		0.79	%		0.79	%		0.63	%(3)		0.81	%		0.74	%(4)
Ratio of Net Investment Income to Average Net Assets		1.47	%		1.16	%		1.15	%		1.56	%		2.37	%		1.21	%		0.89	%		1.06	%(3)		1.30	%		2.18	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%		0.79	%		0.79	%		0.79	%		0.81	%		0.81	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.47	%		1.16	%		1.15	%		1.56	%		2.37	%		1.21	%		0.89	%		0.89	%		1.30	%		2.11	%
Portfolio Turnover Rate		87	%		47	%		69	%		83	%		48	%		87	%		47	%		69	%		83	%		48	%
	Intermediate Bond Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	11.10		$	11.12		$	11.31		$	11.53		$	11.43
Net Investment Income(1)		0.06			0.02			0.02			0.06			0.16
Realized and Unrealized Gain (Loss) on Investments		(0.03	)		0.03			0.03			0.04			0.23
Total from Investment Operations		0.03			0.05			0.05			0.10			0.39
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.06	)		(0.03	)		(0.03	)		(0.07	)		(0.17	)
Distributions from Net Realized Gains		(0.04	)		(0.04	)		(0.21	)		(0.25	)		(0.12	)
Total Distributions		(0.10	)		(0.07	)		(0.24	)		(0.32	)		(0.29	)
Net Asset Value, End of Year	$	11.03		$	11.10		$	11.12		$	11.31		$	11.53
Total Return†		0.22	%		0.42	%		0.43	%		0.91	%		3.38	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	422		$	421		$	724		$	1,322		$	1,083
Ratio of Expenses to Average Net Assets		1.49	%		1.51	%		1.50	%(3)		1.53	%		1.53	%
Ratio of Net Investment Income to Average Net Assets		0.52	%		0.17	%		0.21	%(3)		0.52	%		1.40	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.49	%		1.51	%		1.52	%		1.53	%		1.53	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.52	%		0.17	%		0.19	%		0.52	%		1.40	%
Portfolio Turnover Rate		87	%		47	%		69	%		83	%		48	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.17% and 0.02% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.07% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

190

P N C  F i x e d  I n c o m e  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Limited Maturity Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.18		$	10.20		$	10.18		$	10.19		$	10.23		$	10.22		$	10.26		$	10.21		$	10.22		$	10.26
Net Investment Income(1)		0.07			0.04			0.04			0.06			0.11			0.04			0.02			0.05			0.03			0.09
Realized and Unrealized Gain (Loss) on Investments		–			–			0.03			0.01			(0.02	)		–			0.01			0.03			0.01			(0.02	)
Total from Investment Operations		0.07			0.04			0.07			0.07			0.09			0.04			0.03			0.08			0.04			0.07
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–	*(3)		–			–			–	*(2)		–			–	*(3)
Dividends from Net Investment Income		(0.08	)		(0.06	)		(0.05	)		(0.08	)		(0.13	)		(0.05	)		(0.07	)		(0.03	)		(0.05	)		(0.11	)
Total Distributions		(0.08	)		(0.06	)		(0.05	)		(0.08	)		(0.13	)		(0.05	)		(0.07	)		(0.03	)		(0.05	)		(0.11	)
Net Asset Value, End of Year	$	10.17		$	10.18		$	10.20		$	10.18		$	10.19		$	10.21		$	10.22		$	10.26		$	10.21		$	10.22
Total Return†		0.64	%		0.35	%		0.71	%		0.72	%		0.88	%(3)		0.40	%		0.30	%		0.81	%		0.44	%		0.67	%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	286,767		$	321,337		$	337,808		$	323,255		$	337,295		$	6,158		$	5,736		$	3,299		$	3,924		$	5,116
Ratio of Expenses to Average Net Assets		0.49	%		0.48	%		0.49	%		0.49	%		0.48	%		0.73	%		0.71	%		0.35	%(4)		0.77	%		0.69	%(5)
Ratio of Net Investment Income (Loss) to Average Net Assets		0.66	%		0.44	%		0.37	%		0.54	%		1.06	%		0.41	%		0.17	%		0.52	%(4)		0.32	%		0.93	%(5)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.49	%		0.48	%		0.49	%		0.49	%		0.48	%		0.74	%		0.71	%		0.69	%		0.77	%		0.76	%
Ratio of Net Investment Income (Loss) to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.66	%		0.44	%		0.37	%		0.54	%		1.06	%		0.40	%		0.17	%		0.18	%		0.32	%		0.86	%
Portfolio Turnover Rate		75	%		58	%		68	%		53	%		77	%		75	%		58	%		68	%		53	%		77	%
	Limited Maturity Bond Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.21		$	10.23		$	10.21		$	10.22		$	10.26
Net Investment Income (Loss)(1)		(0.01	)		(0.01	)		(0.01	)		(0.02	)		0.01
Realized and Unrealized Gain (Loss) on Investments		–			(0.01	)		0.03			0.01			(0.02	)
Total from Investment Operations		(0.01	)		(0.02	)		0.02			(0.01	)		(0.01	)
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–	*(3)
Dividends from Net Investment Income		–	*		–	*		–	*		–	*		(0.03	)
Total Distributions		–	*		–	*		–	*		–	*		(0.03	)
Net Asset Value, End of Year	$	10.20		$	10.21		$	10.23		$	10.21		$	10.22
Total Return†		(0.09	)%		(0.17	)%		0.21	%		(0.09	)%		(0.12	)%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	525		$	651		$	1,288		$	1,709		$	2,326
Ratio of Expenses to Average Net Assets		1.21	%		1.09	%		0.94	%(4)		1.30	%		1.48	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.06	)%		(0.09	)%		(0.06	)%(4)		(0.21	)%		0.11	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.49	%		1.48	%		1.44	%		1.49	%		1.48	%
Ratio of Net Investment Income (Loss) to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		(0.34	)%		(0.48	)%		(0.56	)%		(0.40	)%		0.11	%
Portfolio Turnover Rate		75	%		58	%		68	%		53	%		77	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset losses relating to a change in valuation methodology of an asset in the securities lending collateral account of the Acquired Funds prior to the Reorganization. The payment had no impact on the total return of the Fund.

⁽⁴⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.34% and 0.05% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁵⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.07% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

191

	Total Return Advantage Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.91		$	10.97		$	10.91		$	10.88		$	10.64		$	10.92		$	10.97		$	10.91		$	10.89		$	10.65
Net Investment Income(1)		0.25			0.23			0.25			0.27			0.37			0.21			0.20			0.23			0.24			0.35
Realized and Unrealized Gain (Loss) on Investments		(0.11	)		(0.04	)		0.07			0.05			0.25			(0.11	)		(0.03	)		0.06			0.04			0.25
Total from Investment Operations		0.14			0.19			0.32			0.32			0.62			0.10			0.17			0.29			0.28			0.60
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–	*(3)		–			–			–	*(2)		–			–	*(3)
Dividends from Net Investment Income		(0.27	)		(0.25	)		(0.26	)		(0.29	)		(0.38	)		(0.24	)		(0.22	)		(0.23	)		(0.26	)		(0.36	)
Distributions from Net Realized Gains		–			–			–			–			–			–			–			–			–			–
Total Distributions		(0.27	)		(0.25	)		(0.26	)		(0.29	)		(0.38	)		(0.24	)		(0.22	)		(0.23	)		(0.26	)		(0.36	)
Net Asset Value, End of Year	$	10.78		$	10.91		$	10.97		$	10.91		$	10.88		$	10.78		$	10.92		$	10.97		$	10.91		$	10.89
Total Return†		1.32	%		1.71	%		2.99	%		2.96	%		5.92	%(3)		0.96	%		1.52	%		2.71	%		2.58	%		5.70	%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	168,676		$	191,272		$	249,494		$	266,378		$	263,356		$	11,770		$	4,053		$	4,645		$	5,439		$	5,969
Ratio of Expenses to Average Net Assets		0.54	%		0.56	%		0.56	%		0.56	%		0.56	%		0.81	%		0.84	%		0.81	%(4)		0.84	%		0.76	%(5)
Ratio of Net Investment Income to Average Net Assets		2.32	%		2.08	%		2.37	%		2.43	%		3.42	%		1.95	%		1.80	%		2.13	%(4)		2.17	%		3.23	%(5)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.59	%		0.56	%		0.56	%		0.56	%		0.56	%		0.87	%		0.84	%		0.84	%		0.84	%		0.84	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.27	%		2.08	%		2.37	%		2.43	%		3.42	%		1.89	%		1.80	%		2.10	%		2.17	%		3.15	%
Portfolio Turnover Rate		53	%		51	%		59	%		71	%		44	%		53	%		51	%		59	%		71	%		44	%
	Total Return Advantage Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.94		$	10.99		$	10.94		$	10.91		$	10.67
Net Investment Income(1)		0.14			0.12			0.15			0.14			0.26
Realized and Unrealized Gain (Loss) on Investments		(0.12	)		(0.03	)		0.05			0.07			0.25
Total from Investment Operations		0.02			0.09			0.20			0.21			0.51
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–	*(3)
Dividends from Net Investment Income		(0.16	)		(0.14	)		(0.15	)		(0.18	)		(0.27	)
Distributions from Net Realized Gains		–			–			–			–			–
Total Distributions		(0.16	)		(0.14	)		(0.15	)		(0.18	)		(0.27	)
Net Asset Value, End of Year	$	10.80		$	10.94		$	10.99		$	10.94		$	10.91
Total Return†		0.24	%		0.80	%		1.87	%		1.94	%		4.87	%(3)
Ratios/Supplemental Data
Net Assets End of Year (000)	$	992		$	1,077		$	1,042		$	965		$	616
Ratio of Expenses to Average Net Assets		1.52	%		1.55	%		1.54	%(4)		1.56	%		1.55	%
Ratio of Net Investment Income to Average Net Assets		1.33	%		1.07	%		1.38	%(4)		1.31	%		2.41	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.57	%		1.55	%		1.56	%		1.56	%		1.55	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.28	%		1.07	%		1.36	%		1.31	%		2.41	%
Portfolio Turnover Rate		53	%		51	%		59	%		71	%		44	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2012, a payment was made by the Adviser to offset losses relating to a change in valuation methodology of an asset in the securities lending collateral account of the Acquired Funds prior to the Reorganization. The payment had no impact on the total return of the Fund.

⁽⁴⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.03% and 0.02% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁵⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.08% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

192

P N C  F i x e d  I n c o m e  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Ultra Short Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	9.94		$	9.96		$	9.97		$	9.98		$	10.01		$	9.95		$	9.98		$	9.98		$	9.99		$	10.03
Net Investment Income (Loss)(1)		0.04			0.02			0.02			0.02			0.02			0.01			–	*		(0.01	)		–	*		0.01
Realized and Unrealized Gain (Loss) on Investments		0.01			–			–			0.02			0.01			0.01			(0.02	)		0.02			0.01			(0.01	)
Total from Investment Operations		0.05			0.02			0.02			0.04			0.03			0.02			(0.02	)		0.01			0.01			–
Dividends from Net Investment Income		(0.05	)		(0.04	)		(0.03	)		(0.05	)		(0.06	)		(0.02	)		(0.01	)		(0.01	)		(0.02	)		(0.04	)
Total Distributions		(0.05	)		(0.04	)		(0.03	)		(0.05	)		(0.06	)		(0.02	)		(0.01	)		(0.01	)		(0.02	)		(0.04	)
Net Asset Value, End of Year	$	9.94		$	9.94		$	9.96		$	9.97		$	9.98		$	9.95		$	9.95		$	9.98		$	9.98		$	9.99
Total Return†		0.48	%		0.16	%		0.24	%		0.39	%		0.26	%		0.20	%		(0.20	)%		0.06	%		0.11	%		(0.01	)%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	374,899		$	407,537		$	433,326		$	404,709		$	541,798		$	1,286		$	1,554		$	2,286		$	3,735		$	5,733
Ratio of Expenses to Average Net Assets		0.32	%		0.33	%		0.34	%		0.34	%		0.34	%		0.60	%		0.59	%		0.61	%(2)		0.62	%		0.50	%(3)
Ratio of Net Investment Income to Average Net Assets		0.40	%		0.20	%		0.17	%		0.23	%		0.19	%		0.12	%		0.00	%		(0.06	)%(2)		(0.03	)%		0.14	%(3)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.32	%		0.33	%		0.34	%		0.34	%		0.34	%		0.60	%		0.62	%		0.62	%		0.62	%		0.62	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.40	%		0.20	%		0.17	%		0.23	%		0.19	%		0.12	%		(0.03	)%		(0.07	)%		(0.03	)%		0.02	%
Portfolio Turnover Rate(4)		91	%		90	%		94	%		93	%		102	%		91	%		90	%		94	%		93	%		102	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment had no impact to Class A ratios.

⁽³⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.12% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

⁽⁴⁾  Due to its investment strategy, the Ultra Short Bond Fund may buy and sell securities frequently. This may result in higher transaction costs and additional capital gains tax liabilities, and may lower Fund performance.

See Notes to Financial Statements.

193

	Intermediate Tax Exempt Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	9.59		$	9.89		$	10.10		$	10.25		$	9.76		$	9.55		$	9.88		$	10.06		$	10.21		$	9.72
Net Investment Income(1)		0.25			0.25			0.26			0.25			0.26			0.22			0.23			0.26			0.23			0.23
Realized and Unrealized Gain (Loss) on Investments		0.23			(0.02	)		0.06			(0.07	)		0.56			0.23			(0.03	)		0.07			(0.07	)		0.56
Total from Investment Operations		0.48			0.23			0.32			0.18			0.82			0.45			0.20			0.33			0.16			0.79
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.25	)		(0.25	)		(0.26	)		(0.25	)		(0.26	)		(0.22	)		(0.25	)		(0.24	)		(0.23	)		(0.23	)
Distributions from Net Realized Gains		(0.03	)		(0.28	)		(0.27	)		(0.08	)		(0.07	)		(0.03	)		(0.28	)		(0.27	)		(0.08	)		(0.07	)
Total Distributions		(0.28	)		(0.53	)		(0.53	)		(0.33	)		(0.33	)		(0.25	)		(0.53	)		(0.51	)		(0.31	)		(0.30	)
Net Asset Value, End of Year	$	9.79		$	9.59		$	9.89		$	10.10		$	10.25		$	9.75		$	9.55		$	9.88		$	10.06		$	10.21
Total Return†		5.03	%		2.38	%		3.38	%		1.84	%		8.49	%		4.82	%		2.10	%		3.47	%		1.55	%		8.28	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	79,299		$	75,621		$	81,906		$	127,046		$	137,504		$	2,913		$	2,823		$	2,858		$	3,092		$	4,039
Ratio of Expenses to Average Net Assets		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%		0.74	%		0.78	%		0.48	%(3)		0.81	%		0.75	%(4)
Ratio of Net Investment Income to Average Net Assets		2.53	%		2.55	%		2.66	%		2.48	%		2.56	%		2.32	%		2.30	%		2.71	%(3)		2.21	%		2.35	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.64	%		0.61	%		0.58	%		0.56	%		0.55	%		0.85	%		0.86	%		0.81	%		0.84	%		0.83	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.42	%		2.47	%		2.61	%		2.45	%		2.54	%		2.21	%		2.22	%		2.38	%		2.18	%		2.27	%
Portfolio Turnover Rate		22	%		23	%		27	%		35	%		19	%		22	%		23	%		27	%		35	%		19	%
	Intermediate Tax Exempt Bond Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	9.46		$	9.76		$	9.97		$	10.12		$	9.63
Net Investment Income(1)		0.15			0.15			0.16			0.15			0.15
Realized and Unrealized Gain (Loss) on Investments		0.23			(0.01	)		0.06			(0.07	)		0.56
Total from Investment Operations		0.38			0.14			0.22			0.08			0.71
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.15	)		(0.16	)		(0.16	)		(0.15	)		(0.15	)
Distributions from Net Realized Gains		(0.03	)		(0.28	)		(0.27	)		(0.08	)		(0.07	)
Total Distributions		(0.18	)		(0.44	)		(0.43	)		(0.23	)		(0.22	)
Net Asset Value, End of Year	$	9.66		$	9.46		$	9.76		$	9.97		$	10.12
Total Return†		4.09	%		1.42	%		2.37	%		0.82	%		7.49	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	314		$	392		$	353		$	521		$	495
Ratio of Expenses to Average Net Assets		1.46	%		1.51	%		1.52	%(3)		1.53	%		1.53	%
Ratio of Net Investment Income to Average Net Assets		1.60	%		1.56	%		1.69	%(3)		1.48	%		1.55	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.57	%		1.59	%		1.59	%		1.56	%		1.54	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.49	%		1.48	%		1.62	%		1.45	%		1.54	%
Portfolio Turnover Rate		22	%		23	%		27	%		35	%		19	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.28% and 0.01% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.06% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

194

P N C  F i x e d  I n c o m e  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Maryland Tax Exempt Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	11.06		$	11.19		$	11.41		$	11.65		$	11.27		$	11.05		$	11.20		$	11.41		$	11.65		$	11.27
Net Investment Income(1)		0.27			0.29			0.31			0.31			0.32			0.24			0.26			0.30			0.28			0.29
Realized and Unrealized Gain (Loss) on Investments		0.19			(0.06	)		(0.17	)		(0.15	)		0.48			0.19			(0.06	)		(0.18	)		(0.15	)		0.48
Total from Investment Operations		0.46			0.23			0.14			0.16			0.80			0.43			0.20			0.12			0.13			0.77
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.27	)		(0.29	)		(0.31	)		(0.31	)		(0.32	)		(0.24	)		(0.28	)		(0.28	)		(0.28	)		(0.29	)
Distributions from Net Realized Gains		(0.03	)		(0.07	)		(0.05	)		(0.09	)		(0.10	)		(0.03	)		(0.07	)		(0.05	)		(0.09	)		(0.10	)
Total Distributions		(0.30	)		(0.36	)		(0.36	)		(0.40	)		(0.42	)		(0.27	)		(0.35	)		(0.33	)		(0.37	)		(0.39	)
Net Asset Value, End of Year	$	11.22		$	11.06		$	11.19		$	11.41		$	11.65		$	11.21		$	11.05		$	11.20		$	11.41		$	11.65
Total Return†		4.19	%		2.09	%		1.31	%		1.35	%		7.23	%		3.90	%		1.83	%		1.18	%		1.06	%		6.96	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	46,366		$	50,336		$	55,118		$	66,494		$	73,197		$	212		$	306		$	555		$	677		$	832
Ratio of Expenses to Average Net Assets		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%		0.81	%		0.80	%		0.63	%(3)		0.81	%		0.78	%(4)
Ratio of Net Investment Income to Average Net Assets		2.44	%		2.59	%		2.78	%		2.68	%		2.79	%		2.16	%		2.31	%		2.68	%(3)		2.39	%		2.54	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.67	%		0.61	%		0.57	%		0.56	%		0.55	%		0.94	%		0.88	%		0.80	%		0.84	%		0.83	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.30	%		2.51	%		2.74	%		2.65	%		2.77	%		2.03	%		2.23	%		2.51	%		2.36	%		2.49	%
Portfolio Turnover Rate		18	%		9	%		4	%		14	%		21	%		18	%		9	%		4	%		14	%		21	%
	Maryland Tax Exempt Bond Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	11.06		$	11.19		$	11.40		$	11.65		$	11.27
Net Investment Income(1)		0.17			0.18			0.21			0.19			0.20
Realized and Unrealized Gain (Loss) on Investments		0.18			(0.05	)		(0.17	)		(0.16	)		0.48
Total from Investment Operations		0.35			0.13			0.04			0.03			0.68
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.17	)		(0.19	)		(0.20	)		(0.19	)		(0.20	)
Distributions from Net Realized Gains		(0.03	)		(0.07	)		(0.05	)		(0.09	)		(0.10	)
Total Distributions		(0.20	)		(0.26	)		(0.25	)		(0.28	)		(0.30	)
Net Asset Value, End of Year	$	11.21		$	11.06		$	11.19		$	11.40		$	11.65
Total Return†		3.12	%		1.17	%		0.44	%		0.23	%		6.08	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	23		$	56		$	55		$	54		$	1
Ratio of Expenses to Average Net Assets		1.47	%		1.51	%		1.42	%(3)		1.50	%		1.51	%
Ratio of Net Investment Income to Average Net Assets		1.49	%		1.60	%		1.89	%(3)		1.65	%		1.71	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.60	%		1.59	%		1.53	%		1.54	%		1.51	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.36	%		1.52	%		1.78	%		1.61	%		1.71	%
Portfolio Turnover Rate		18	%		9	%		4	%		14	%		21	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares and Class C Shares. This voluntary commitment represented a 0.13% and 0.07% impact to Class A and Class C ratios, respectively, and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A and Class C shareholders. Excluding this item, the expense ratios would have been higher and the net investment income ratios would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.03% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

195

	Ohio Intermediate Tax Exempt Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.88		$	11.13		$	11.39		$	11.70		$	11.34		$	10.85		$	11.10		$	11.35		$	11.66		$	11.31
Net Investment Income(1)		0.25			0.28			0.32			0.34			0.35			0.21			0.25			0.29			0.31			0.33
Realized and Unrealized Gain (Loss) on Investments		0.23			(0.10	)		(0.11	)		(0.17	)		0.57			0.23			(0.10	)		(0.10	)		(0.17	)		0.56
Total from Investment Operations		0.48			0.18			0.21			0.17			0.92			0.44			0.15			0.19			0.14			0.89
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.25	)		(0.28	)		(0.32	)		(0.34	)		(0.35	)		(0.21	)		(0.25	)		(0.29	)		(0.31	)		(0.33	)
Distributions from Net Realized Gains		(0.13	)		(0.15	)		(0.15	)		(0.14	)		(0.21	)		(0.13	)		(0.15	)		(0.15	)		(0.14	)		(0.21	)
Total Distributions		(0.38	)		(0.43	)		(0.47	)		(0.48	)		(0.56	)		(0.34	)		(0.40	)		(0.44	)		(0.45	)		(0.54	)
Net Asset Value, End of Year	$	10.98		$	10.88		$	11.13		$	11.39		$	11.70		$	10.95		$	10.85		$	11.10		$	11.35		$	11.66
Total Return†		4.42	%		1.58	%		2.01	%		1.47	%		8.29	%		4.13	%		1.36	%		1.82	%		1.18	%		7.98	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	39,861		$	44,480		$	56,863		$	76,086		$	82,881		$	4,189		$	4,515		$	5,294		$	6,567		$	7,843
Ratio of Expenses to Average Net Assets		0.70	%		0.61	%		0.58	%		0.56	%		0.55	%		0.98	%		0.90	%		0.80	%(3)		0.84	%		0.76	%(4)
Ratio of Net Investment Income to Average Net Assets		2.25	%		2.53	%		2.90	%		2.93	%		3.03	%		1.96	%		2.27	%		2.67	%(3)		2.65	%		2.83	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.70	%		0.61	%		0.58	%		0.56	%		0.55	%		0.98	%		0.90	%		0.85	%		0.84	%		0.83	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		2.25	%		2.53	%		2.90	%		2.93	%		3.03	%		1.96	%		2.27	%		2.62	%		2.65	%		2.76	%
Portfolio Turnover Rate		20	%		15	%		11	%		15	%		14	%		20	%		15	%		11	%		15	%		14	%
	Ohio Intermediate Tax Exempt Bond Fund
	Class C
	2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.82		$	11.06		$	11.32		$	11.63		$	11.28
Net Investment Income(1)		0.14			0.18			0.21			0.22			0.23
Realized and Unrealized Gain (Loss) on Investments		0.23			(0.10	)		(0.11	)		(0.17	)		0.56
Total from Investment Operations		0.37			0.08			0.10			0.05			0.79
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.14	)		(0.17	)		(0.21	)		(0.22	)		(0.23	)
Distributions from Net Realized Gains		(0.13	)		(0.15	)		(0.15	)		(0.14	)		(0.21	)
Total Distributions		(0.27	)		(0.32	)		(0.36	)		(0.36	)		(0.44	)
Net Asset Value, End of Year	$	10.92		$	10.82		$	11.06		$	11.32		$	11.63
Total Return†		3.40	%		0.66	%		0.99	%		0.45	%		7.16	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	467		$	458		$	459		$	620		$	692
Ratio of Expenses to Average Net Assets		1.70	%		1.63	%		1.58	%		1.56	%		1.55	%
Ratio of Net Investment Income to Average Net Assets		1.25	%		1.59	%		1.90	%		1.94	%		2.04	%
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.70	%		1.63	%		1.58	%		1.56	%		1.55	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.25	%		1.59	%		1.90	%		1.94	%		2.04	%
Portfolio Turnover Rate		20	%		15	%		11	%		15	%		14	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment represented a 0.05% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.07% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

196

P N C  F i x e d  I n c o m e  F u n d s F I N A N C I A L  H I G H L I G H T S S e l e c t e d  P e r  S h a r e  D a t a  a n d  R a t i o s F o r  t h e  Y e a r s  E n d e d  M a y  3 1 , u n l e s s  o t h e r w i s e  i n d i c a t e d

	Tax Exempt Limited Maturity Bond Fund
	Class I															Class A
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
Net Asset Value, Beginning of Year	$	10.39		$	10.50		$	10.52		$	10.64		$	10.44		$	10.39		$	10.50		$	10.53		$	10.64		$	10.45
Net Investment Income(1)		0.16			0.16			0.15			0.17			0.19			0.13			0.13			0.12			0.14			0.17
Realized and Unrealized Gain (Loss) on Investments		0.07			(0.11	)		–	*		(0.10	)		0.20			0.08			(0.11	)		(0.01	)		(0.09	)		0.19
Total from Investment Operations		0.23			0.05			0.15			0.07			0.39			0.21			0.02			0.11			0.05			0.36
Contributions of Capital by Affiliate(1)		–			–			–	*(2)		–			–			–			–			–	*(2)		–			–
Dividends from Net Investment Income		(0.16	)		(0.16	)		(0.15	)		(0.17	)		(0.19	)		(0.13	)		(0.13	)		(0.12	)		(0.14	)		(0.17	)
Distributions from Net Realized Gains		–			–			(0.02	)		(0.02	)		–			–			–			(0.02	)		(0.02	)		–
Total Distributions		(0.16	)		(0.16	)		(0.17	)		(0.19	)		(0.19	)		(0.13	)		(0.13	)		(0.14	)		(0.16	)		(0.17	)
Net Asset Value, End of Year	$	10.46		$	10.39		$	10.50		$	10.52		$	10.64		$	10.47		$	10.39		$	10.50		$	10.53		$	10.64
Total Return†		2.19	%		0.46	%		1.47	%		0.67	%		3.78	%		2.01	%		0.19	%		1.12	%		0.49	%		3.45	%
Ratios/Supplemental Data
Net Assets End of Year (000)	$	131,767		$	133,081		$	144,797		$	145,668		$	140,442		$	249		$	452		$	470		$	541		$	526
Ratio of Expenses to Average Net Assets		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%		0.80	%		0.81	%		0.80	%(3)		0.81	%		0.76	%(4)
Ratio of Net Investment Income to Average Net Assets		1.49	%		1.50	%		1.42	%		1.60	%		1.81	%		1.22	%		1.23	%		1.19	%(3)		1.32	%		1.59	%(4)
Ratio of Expenses to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		0.56	%		0.55	%		0.54	%		0.55	%		0.53	%		0.83	%		0.83	%		0.83	%		0.83	%		0.82	%
Ratio of Net Investment Income to Average Net Assets (Before Fee Waivers and Reimbursement, as applicable)		1.46	%		1.48	%		1.41	%		1.58	%		1.81	%		1.19	%		1.21	%		1.16	%		1.30	%		1.53	%
Portfolio Turnover Rate		29	%		36	%		48	%		51	%		19	%		29	%		36	%		48	%		51	%		19	%

* Amount represents less than $0.005 per share.

† Total return excludes sales charge.

⁽¹⁾  Per share data calculated using average shares outstanding method.

⁽²⁾  During the fiscal year ended May 31, 2014, a voluntary payment was made by PNC Bank, N.A., an affiliate of the Adviser. The payment represents a reimbursement of shareholder services fees borne in prior periods by Class C Shares of the Fund. For tax purposes, this amount represents capital. The payment had no impact to the total return of the Fund.

⁽³⁾  During the fiscal year ended May 31, 2014, the Underwriter committed to make a voluntary expense reimbursement to Class A Shares. This voluntary commitment represented a 0.01% impact to Class A ratios and represented shareholder services fees paid to the Underwriter in prior fiscal years in its role as default broker-dealer to certain Class A shareholders. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

⁽⁴⁾  During the fiscal year ended May 31, 2012, a portion of the Trust’s Class A distribution plan payable balance in excess of actual expenses incurred was added back to the Class A net asset value of the Fund, which represented a 0.05% impact to Class A ratios. Excluding this item, the expense ratio would have been higher and the net investment income ratio would have been lower.

See Notes to Financial Statements.

197

P N C  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Par (000)		Value (000)
ASSET-BACKED SECURITIES — 8.1%
Automotive — 4.6%
Fifth Third Auto Trust,
Series 2015-1, Cl A3
1.420%, 03/16/20		$375	$	376
Ford Credit Auto Lease Trust,
Series 2016-A, Cl A2A
1.420%, 11/15/18		345		345
Ford Credit Auto Owner Trust,
Series 2014-C, Cl A3
1.060%, 05/15/19		470		470
Ford Credit Auto Owner Trust,
Series 2015-A, Cl A2A
0.810%, 01/15/18		92		92
Ford Credit Auto Owner Trust,
Series 2016-A, Cl A3
1.390%, 07/15/20		85		85
Honda Auto Receivables Owner Trust,
Series 2015-4, Cl A3
1.230%, 09/23/19		305		305
Honda Auto Receivables Owner Trust,
Series 2016-2, Cl A3
1.390%, 04/15/20		130		130
Hyundai Auto Receivables Trust,
Series 2015-A, Cl A2
0.680%, 10/16/17		101		101
Hyundai Auto Receivables Trust,
Series 2015-B, Cl A2A
0.690%, 04/16/18		339		338
Mercedes-Benz Auto Receivables Trust,
Series 2015-1, Cl A2A
0.820%, 06/15/18		595		595
Nissan Auto Receivables Owner Trust,
Series 2015-B, Cl A3
1.340%, 03/16/20		760		761
Volkswagen Auto Lease Trust,
Series 2015-A, Cl A3
1.250%, 12/20/17		405		404
				4,002
Credit Cards — 2.8%
American Express Credit Account Master Trust,
Series 2014-3, Cl A
1.490%, 04/15/20		500		503
BA Credit Card Trust,
Series 2015-A2, Cl A
1.360%, 09/15/20		905		907
Capital One Multi-Asset Execution Trust,
Series 2014-A5, Cl A5
1.480%, 07/15/20		365		367
Synchrony Credit Card Master Note Trust,
Series 2012-6, Cl A
1.360%, 08/17/20		595		595
				2,372
Equipment — 0.4%
John Deere Owner Trust,
Series 2014-B, Cl A3
1.070%, 11/15/18		332		332

	Par (000)		Value (000)
Utilities — 0.3%
CenterPoint Energy Transition Bond LLC,
Series 2012-1, Cl A2
2.161%, 10/15/21		$250	$	254
Total Asset-Backed Securities (Cost $6,950)				6,960
CORPORATE BONDS — 30.6%
Aerospace — 0.4%
Lockheed Martin
3.800%, 03/01/45		350		341
Automotive — 1.2%
Ford Motor Credit LLC (MTN)
1.082%, 11/08/16 (A)		325		325
General Motors Financial
3.200%, 07/13/20		250		252
Toyota Motor Credit (MTN)
3.400%, 09/15/21		270		289
Volkswagen Group of America Finance LLC
1.024%, 05/23/17 (A) 144A		200		199
				1,065
Cable — 1.6%
21st Century Fox America
8.450%, 08/01/34		265		382
CBS
4.000%, 01/15/26		230		243
Discovery Communications LLC
3.250%, 04/01/23		335		324
Scripps Networks Interactive
2.800%, 06/15/20		250		252
Time Warner Cable
4.500%, 09/15/42		250		223
				1,424
Consumer Discretionary — 0.7%
Carnival
3.950%, 10/15/20		230		245
Hasbro
6.300%, 09/15/17		319		338
				583
Consumer Services — 0.3%
Automatic Data Processing
3.375%, 09/15/25		240		256
Consumer Staples — 0.3%
Procter & Gamble
5.550%, 03/05/37		200		267
Energy — 2.5%
BP Capital Markets PLC
3.245%, 05/06/22		205		211
ConocoPhillips
6.500%, 02/01/39		245		302
Energy Transfer Partners LP
6.125%, 12/15/45		110		103
4.050%, 03/15/25		210		193
EQT
5.150%, 03/01/18		125		127
4.875%, 11/15/21		245		248

See Notes to Financial Statements.

198

P N C  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Par (000)		Value (000)
CORPORATE BONDS — continued
Energy — continued
Kinder Morgan Energy Partners LP
6.500%, 04/01/20		$121	$	131
Kinder Morgan Energy Partners LP (MTN)
6.950%, 01/15/38		237		246
Petroleos Mexicanos
6.000%, 03/05/20		155		165
Phillips 66
4.650%, 11/15/34		235		238
Williams Partners LP
4.125%, 11/15/20		225		211
				2,175
Financials — 10.2%
American Express
6.800%, 09/01/66 (A)		225		225
American Express Credit (GMTN)
2.250%, 08/15/19		335		340
Australia & New Zealand Banking Group
4.400%, 05/19/26 144A		225		228
Bank of America (MTN)
4.200%, 08/26/24		465		475
4.000%, 04/01/24		275		289
BankUnited
4.875%, 11/17/25		165		166
BB&T (MTN)
2.050%, 05/10/21		180		179
BBVA Bancomer SA
4.375%, 04/10/24 144A		250		258
Capital One Financial
4.200%, 10/29/25		100		102
2.450%, 04/24/19		475		479
Citigroup
4.450%, 09/29/27		260		264
2.050%, 12/07/18		380		382
Credit Suisse Group Funding Guernsey
3.750%, 03/26/25		300		294
Deutsche Bank AG
2.950%, 08/20/20		315		314
Deutsche Bank AG (GMTN)
2.850%, 05/10/19		120		120
Goldman Sachs Group
6.250%, 09/01/17		235		248
5.750%, 01/24/22		200		229
HSBC Holdings PLC
5.100%, 04/05/21		385		423
JPMorgan Chase
4.625%, 05/10/21		420		461
3.375%, 05/01/23		215		216
Lloyds Banking Group PLC
4.650%, 03/24/26		250		253
Morgan Stanley (GMTN)
4.875%, 11/01/22		260		282
2.125%, 04/25/18		420		423
Royal Bank of Canada
1.200%, 09/19/17		235		235
Santander UK Group Holdings PLC
2.875%, 10/16/20		220		219
State Street
1.950%, 05/19/21		125		125
Toronto-Dominion Bank (GMTN)
2.500%, 12/14/20		215		219

	Par (000)		Value (000)
Visa
4.150%, 12/14/35		$410	$	446
Wells Fargo
5.900%, 12/29/49 (A)		230		238
Wells Fargo (GMTN)
4.300%, 07/22/27		100		106
Wells Fargo (MTN)
3.300%, 09/09/24		105		108
Westpac Banking
2.250%, 07/30/18		335		340
1.650%, 05/13/19		125		125
				8,811
Food, Beverage & Tobacco — 0.6%
Anheuser-Busch InBev Finance
4.900%, 02/01/46		260		290
Kraft Heinz Foods
5.200%, 07/15/45 144A		200		224
				514
Healthcare — 3.2%
AbbVie
2.300%, 05/14/21		145		144
1.750%, 11/06/17		420		421
Actavis Funding SCS
3.450%, 03/15/22		520		528
Amgen
4.400%, 05/01/45		370		369
Johnson & Johnson
3.550%, 03/01/36		400		417
Mylan NV
2.500%, 06/07/19 144A		175		175
Novartis Capital
3.700%, 09/21/42		260		267
Teva Pharmaceutical Finance BV
2.950%, 12/18/22		150		149
Teva Pharmaceutical Finance IV BV
3.650%, 11/10/21		260		270
				2,740
Industrials — 0.3%
General Electric
4.125%, 10/09/42		240		254
Insurance — 1.5%
Assurant
2.500%, 03/15/18		235		237
Berkshire Hathaway Finance
4.250%, 01/15/21		215		237
Chubb INA Holdings
2.875%, 11/03/22		125		129
MetLife
6.400%, 12/15/36		210		226
Teachers Insurance & Annuity Association of America
4.900%, 09/15/44 144A		190		206
XLIT
2.300%, 12/15/18		300		301
				1,336
Materials — 0.3%
Cytec Industries
3.950%, 05/01/25		250		243

See Notes to Financial Statements.

199

	Par (000)		Value (000)
CORPORATE BONDS — continued
Real Estate Investment Trusts — 1.4%
American Campus Communities Operating Partnership LP
4.125%, 07/01/24		$105	$	108
3.750%, 04/15/23		290		294
Digital Realty Trust LP
5.250%, 03/15/21		185		204
Host Hotels & Resorts LP
3.750%, 10/15/23		270		267
Realty Income
3.250%, 10/15/22		380		381
				1,254
Retail — 1.5%
Expedia
5.000%, 02/15/26 144A		200		200
McDonald’s Corp (MTN)
3.700%, 01/30/26		65		69
Priceline Group
3.600%, 06/01/26		330		332
Wal-Mart Stores
5.250%, 09/01/35		530		667
				1,268
Technology — 1.8%
Apple
3.850%, 05/04/43		445		434
Avnet
4.625%, 04/15/26		195		198
Intel
3.100%, 07/29/22		225		237
KLA-Tencor
4.125%, 11/01/21		400		423
Oracle
4.300%, 07/08/34		210		224
				1,516
Telecommunications — 0.9%
AT&T
4.600%, 02/15/21		350		380
4.450%, 04/01/24		35		37
Verizon Communications
4.272%, 01/15/36		345		343
				760
Transportation — 0.8%
Burlington Northern Santa Fe LLC
4.550%, 09/01/44		220		240
ERAC USA Finance LLC
5.625%, 03/15/42 144A		200		232
FedEx
3.900%, 02/01/35		250		246
				718
Utilities — 1.1%
Berkshire Hathaway Energy
6.125%, 04/01/36		182		234
Exelon Generation LLC
4.000%, 10/01/20#		227		239
Florida Power & Light
4.050%, 10/01/44		175		188

	Par (000)		Value (000)
Puget Sound Energy
5.757%, 10/01/39		$202	$	259
				920
Total Corporate Bonds (Cost $25,429)				26,445
MUNICIPAL BOND — 0.4%
Texas — 0.4%
Texas Transportation Commission (RB) Series B
5.178%, 04/01/30		320		396
Total Municipal Bond (Cost $328)				396
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS — 27.8%
Federal Home Loan Mortgage Corporation — 2.0%
9.500%, 10/01/20		3		3
8.500%, 09/01/16 (B)		–		–
8.000%, 07/01/25		21		24
7.500%, 09/01/30 (B)		–		–
6.000%, 09/01/19		5		5
5.500%, 06/01/33 (B)		–		–
4.500%, 07/01/40		591		646
3.500%, 06/01/42		687		720
3.000%, 12/01/42		348		357
2.685%, 01/01/36 (A)		5		6
2.565%, 12/01/36 (A)		6		6
				1,767
Federal National Mortgage Association — 23.1%
8.000%, 03/01/31		1		1
6.000%, 09/01/37		2		2
5.500%, 05/01/35		206		233
5.500%, 03/01/36		22		25
5.000%, 03/01/40		467		520
4.500%, 10/01/39		1,012		1,103
4.500%, 03/01/40		267		292
4.500%, 04/01/40		447		491
4.500%, 07/01/40		23		25
4.500%, 04/01/41		329		359
4.000%, 09/01/39		17		18
4.000%, 11/01/40		740		793
4.000%, 01/01/41		866		938
4.000%, 02/01/41		560		599
4.000%, 11/01/41		29		31
4.000%, 12/01/41		478		512
4.000%, 07/01/42		559		599
4.000%, 11/01/44		769		826
4.000%, 11/01/45		798		853
3.500%, 01/01/28		351		371
3.500%, 09/01/29		398		420
3.500%, 11/01/29		390		412
3.500%, 03/01/41		784		821
3.500%, 07/01/42		609		642
3.500%, 08/01/42		638		670
3.500%, 10/01/42		938		983
3.500%, 11/01/42		53		55
3.500%, 02/01/43		909		957
3.500%, 08/01/43		549		575
3.500%, 12/01/45		1,028		1,077
3.000%, 06/01/27		477		498

See Notes to Financial Statements.

200

P N C  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Par (000)		Value (000)
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — continued
Federal National Mortgage Association — continued
3.000%, 11/01/27		$597	$	623
3.000%, 04/01/43		1,243		1,276
3.000%, 06/01/43		1,125		1,154
2.500%, 11/01/27		1,122		1,155
2.192%, 08/01/35 (A)		3		4
				19,913
Government National Mortgage Association — 2.7%
8.500%, 11/15/21		19		19
8.500%, 07/15/22		4		4
8.250%, 04/20/17 (B)		–		–
6.000%, 01/15/32 (B)		–		–
4.500%, 10/20/45		633		681
4.000%, 09/15/41		746		800
3.500%, 07/15/42 (B)		–		–
3.500%, 12/20/42		741		785
				2,289
Total U.S. Government Agency Mortgage-Backed Obligations
(Cost $23,300)				23,969
U.S. TREASURY OBLIGATIONS — 31.4%
U.S. Treasury Bonds — 5.2%
4.500%, 02/15/36		1,491		2,037
3.750%, 08/15/41		1,705		2,094
3.125%, 08/15/44		365		402
				4,533
U.S. Treasury Notes — 26.2%
3.000%, 09/30/16		70		71
2.500%, 08/15/23		545		576
2.375%, 08/15/24		555		581
2.250%, 11/15/24		310		321
2.250%, 11/15/25		595		616
2.125%, 05/15/25		1,755		1,800
2.000%, 02/28/21		955		983
2.000%, 02/15/23		1,055		1,080
1.750%, 10/31/20		1,705		1,735
1.625%, 04/30/19		1,805		1,836
1.625%, 07/31/19		360		366
1.625%, 12/31/19		1,450		1,473
1.625%, 08/15/22		2,740		2,748
1.500%, 06/30/16		925		926
1.250%, 01/31/19		5		5
1.250%, 10/31/19		725		728
1.000%, 03/31/17		550		551
0.750%, 01/15/17		1,350		1,351
0.750%, 03/31/18		1,085		1,083
0.625%, 07/15/16		1,460		1,461
0.625%, 11/15/16		1,315		1,315
0.500%, 07/31/16		1,020		1,020
				22,626
Total U.S. Treasury Obligations
(Cost $26,700)				27,159

	Number of Shares		Value (000)
MONEY MARKET FUND — 1.7%
PNC Government Money Market Fund,
Class I Shares 0.080%† (C)		1,448,642	$	1,449
Total Money Market Fund
(Cost $1,449)				1,449
Total Investments Before Short-Term Investments Purchased with
Collateral from Securities Loaned – 100.0%
(Cost $84,156)				86,378
SHORT-TERM INVESTMENTS PURCHASED WITH
COLLATERAL FROM SECURITIES LOANED — 0.3%
Affiliated Money Market Fund — 0.3%
PNC Government Money Market Fund,
Class I Shares 0.080%† (C)		215,494		216
Money Market Fund — 0.0%
Morgan Stanley Institutional Liquidity Funds
Government Portfolio,
Institutional Class 0.250% (C)		27,182		27
Total Short-Term Investments Purchased With Collateral From
Securities Loaned
(Cost $243)‡				243
TOTAL INVESTMENTS — 100.3%
(Cost $84,399)*				86,621
Other Assets & Liabilities – (0.3)%				(296	)
TOTAL NET ASSETS — 100.0%			$	86,325

* Aggregate cost for Federal income tax purposes is (000) $84,469.

Gross unrealized appreciation (000)	$	2,368
Gross unrealized depreciation (000)		(216	)
Net unrealized appreciation (000)	$	2,152

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $237 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(B) Par and Value are less than $500.

(C) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $1,722 (000) and represents 2.0% of net assets as of May 31, 2016.

See Notes to Financial Statements.

201

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

			Level 2		Level 3
	Level 1		Other Significant		Significant		Total
	Quoted Prices		Observable Inputs		Unobservable Inputs		Value
	(000)		(000)		(000)		(000)
Assets:
Asset-Backed Securities	$	–	$	6,960	$	–	$	6,960
Corporate Bonds		–		26,445		–		26,445
Money Market Fund		1,449		–		–		1,449
Municipal Bond		–		396		–		396
Short-Term Investments Purchased With Collateral From Securities Loaned		243		–		–		243
U.S. Government Agency Mortgage-Backed Obligations		–		23,969		–		23,969
U.S. Treasury Obligations		–		27,159		–		27,159
Total Assets - Investments in Securities	$	1,692	$	84,929	$	–	$	86,621
Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:
			Level 2		Level 3
	Level 1		Other Significant		Significant		Total
	Quoted Prices		Observable Inputs		Unobservable Inputs		Value
	(000)		(000)		(000)		(000)
Liabilities:
Payable for collateral received for loaned securities	$	–	$	243	$	–	$	243
Total Liabilities - Collateral Received for Loaned Securities	$	–	$	243	$	–	$	243

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

202

P N C  G o v e r n m e n t  M o r t g a g e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Par (000)		Value (000)
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — 89.9%
Federal Home Loan Mortgage Corporation — 10.3%
9.000%,06/01/16 to 09/01/20	$	3	$	3
8.500%,11/01/18 to 01/01/22		6		6
8.000%,02/01/17 to 03/01/22		3		3
7.000%,05/01/31		9		10
6.000%,10/01/32		105		120
5.500%,03/01/28		74		83
4.500%,03/01/40 to 07/01/40		1,154		1,268
4.000%,09/01/40 to 01/01/41		778		832
3.500%,06/01/42 to 12/01/42		2,001		2,096
3.000%,04/01/43 to 01/01/46		953		977
				5,398
Federal National Mortgage Association — 66.1%
10.000%,06/01/21		2		2
9.000%,02/01/17 to 10/01/19		2		2
8.500%,11/01/21 to 09/01/23		4		4
8.000%,02/01/23 to 03/01/23		3		4
7.500%,09/01/22 to 07/01/31		74		90
7.000%,01/01/31 to 09/01/31		36		37
6.500%,02/01/38		398		472
6.000%,01/01/37		518		597
5.500%,12/01/18 to 01/01/35		1,161		1,309
5.000%,10/01/35 to 10/01/39		1,360		1,519
4.500%,06/01/20 to 09/01/43		3,449		3,769
4.000%,07/01/25 to 12/01/42		6,350		6,798
3.500%,08/01/26 to 05/01/45		10,097		10,592
3.000%,04/01/27 to 09/01/43		7,274		7,511
2.500%,09/01/27 to 04/01/28		2,021		2,081
				34,787
Government National Mortgage Association — 13.5%
9.250%,12/15/19 to 05/15/21		15		16
9.000%,08/20/16 to 11/15/24		34		37
8.750%,12/15/16		4		4
8.500%,02/15/17 to 09/15/24		46		48
8.000%,04/15/17 to 04/15/30		109		120
7.500%,05/15/22 to 09/20/30		208		225
7.000%,03/15/23 to 07/15/31		307		344
5.000%,10/15/39		937		1,053
4.500%,03/15/39 to 10/20/45		1,437		1,575
4.000%,09/15/39 to 10/20/44		2,070		2,216
3.500%,06/20/42 to 01/20/43		1,373		1,450
				7,088
Total U.S. Government Agency Mortgage-Backed Obligations (Cost $45,924)				47,273

	Par (000)		Value (000)
U.S. TREASURY OBLIGATIONS — 8.5%
U.S. Treasury Notes — 8.5%
1.250%, 10/31/19		$1,380	$	1,386
0.750%, 02/28/18		3,110		3,104
				4,490
Total U.S. Treasury Obligations (Cost $4,493)				4,490
COLLATERALIZED MORTGAGE OBLIGATION — 0.0%
Freddie Mac, Series 1273, Cl Z
7.500%, 05/15/22		17		19
Total Collateralized Mortgage Obligation (Cost $18)				19
	Number of Shares
MONEY MARKET FUND — 1.5%
PNC Government Money Market Fund,
Class I Shares 0.080%† (A)		768,744		769
Total Money Market Fund (Cost $769)				769
TOTAL INVESTMENTS — 99.9% (Cost $51,204)*				52,551
Other Assets & Liabilities – 0.1%				57
TOTAL NET ASSETS — 100.0%			$	52,608

* Aggregate cost for Federal income tax purposes is (000) $51,205.

Gross unrealized appreciation (000)	$1,453
Gross unrealized depreciation (000)	(107	)
Net unrealized appreciation (000)	$1,346

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

203

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

			Level 2		Level 3
	Level 1		Other Significant		Significant		Total
	Quoted Prices		Observable Inputs		Unobservable Inputs		Value
	(000)		(000)		(000)		(000)
Assets:
Collateralized Mortgage Obligation	$	–	$	19	$	–	$	19
Money Market Fund		769		–		–		769
U.S. Government Agency Mortgage-Backed Obligations		–		47,273		–		47,273
U.S. Treasury Obligations		–		4,490		–		4,490
Total Assets - Investments in Securities	$	769	$	51,782	$	–	$	52,551

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

204

P N C  H i g h  Y i e l d  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1,  2 0 1 6

	Par (000)		Value (000)
CORPORATE BONDS — 97.9%
Aerospace — 3.3%
Spirit AeroSystems
6.750%, 12/15/20		$423	$	439
Automotive — 2.1%
General Motors Escrow Bond
8.375%, 07/15/33* (A) (B) (C)		405		–
Lear
5.375%, 03/15/24		125		132
Penske Automative Group
5.500%, 05/15/26		150		149
				281
Cable — 9.4%
Belo
7.750%, 06/01/27		225		237
Cable One
5.750%, 06/15/22 144A		200		205
CCO Holdings LLC
6.625%, 01/31/22		115		122
CSC Holdings LLC
8.625%, 02/15/19		325		360
Sinclair Television Group
6.375%, 11/01/21		325		343
				1,267
Consumer Services — 15.9%
Avon Products
6.750%, 03/15/23		75		56
5.750%, 03/01/18		150		148
DreamWorks Animation SKG
6.875%, 08/15/20 144A		350		371
Graham Holdings
7.250%, 02/01/19		225		245
H&E Equipment Services
7.000%, 09/01/22#		208		214
Live Nation Entertainment
7.000%, 09/01/20 144A		200		210
Royal Caribbean Cruises
7.500%, 10/15/27		400		465
Sotheby’s
5.250%, 10/01/22 144A		450		439
				2,148
Energy — 12.6%
Boardwalk Pipelines LP
5.950%, 06/01/26		150		150
Chesapeake Energy
7.250%, 12/15/18		50		43
Cloud Peak Energy Resources LLC
8.500%, 12/15/19		170		76
Continental Resources
5.000%, 09/15/22		150		142
Denbury Resources
5.500%, 05/01/22		85		60
Freeport-McMoran Oil & Gas LLC
6.875%, 02/15/23		300		279
Kinder Morgan (GMTN)
7.750%, 01/15/32		200		216
Marathon Oil
5.900%, 03/15/18		119		123

	Par (000)		Value (000)
McDermott International
8.000%, 05/01/21 144A		$200	$	175
Peabody Energy
10.000%, 03/15/22 (C) 144A		250		36
PHI
5.250%, 03/15/19		250		224
Transocean
6.000%, 03/15/18		110		107
Williams Partners LP
4.125%, 11/15/20		70		66
				1,697
Financials — 8.8%
Ally Financial
4.750%, 09/10/18		125		128
American Express
6.800%, 09/01/66 (D)		145		145
Bank of America
6.250%, 09/29/49 (D)		200		205
Citigroup
6.250%, 12/29/49 (D)		125		129
5.800%, 11/29/49 (D)		125		121
International Lease Finance
3.875%, 04/15/18		250		254
Royal Bank of Scotland Group PLC
6.000%, 12/19/23		190		198
				1,180
Food, Beverage & Tobacco — 0.8%
Constellation Brands
6.000%, 05/01/22		100		113
Healthcare — 7.8%
DaVita HealthCare Partners
5.750%, 08/15/22		240		251
HCA Holdings
5.875%, 03/15/22		308		333
Select Medical
6.375%, 06/01/21		350		337
Tenet Healthcare
6.000%, 10/01/20		125		131
				1,052
Industrials — 21.4%
Ball
4.000%, 11/15/23		150		147
Bombardier
7.750%, 03/15/20 144A		225		224
CNH Industrial Capital LLC
3.375%, 07/15/19		215		212
CrownCork & Seal
7.375%, 12/15/26		215		236
Erickson
8.250%, 05/01/20		125		66
Hertz
7.500%, 10/15/18		110		112
K. Hovnanian Enterprises
7.250%, 10/15/20 144A		125		110
KLX
5.875%, 12/01/22 144A		270		264
Masco
7.750%, 08/01/29		362		420

See Notes to Financial Statements.

205

	Par (000)		Value (000)
CORPORATE BONDS — continued
Industrials — continued
Owens-Brockway Glass Container
6.375%, 08/15/25 144A		$225	$	240
PulteGroup
7.875%, 06/15/32		235		264
United Rentals
4.625%, 07/15/23		183		182
USG
7.875%, 03/30/20 144A		385		400
				2,877
Information Technology — 1.1%
VeriSign
4.625%, 05/01/23		150		152
Materials — 3.7%
ArcelorMittal
10.850%, 06/01/19		175		206
Eldorado Gold
6.125%, 12/15/20 144A		310		291
				497
Retail — 6.2%
Expedia
5.000%, 02/15/26 144A		210		210
Hanesbrands
6.375%, 12/15/20		175		181
4.625%, 05/15/24 144A		215		215
Levi Strauss
6.875%, 05/01/22		190		203
Sally Holdings LLC
5.500%, 11/01/23		28		29
				838
Telecommunications — 4.8%
DigitalGlobe
5.250%, 02/01/21 144A		369		339
SBA Telecommunications
5.750%, 07/15/20		300		309
				648
Total Corporate Bonds
(Cost $13,229)				13,189

	Number of Shares		Value (000)
COMMON STOCK — 0.4%
Automotive — 0.4%
General Motors		1,780	$	56
Total Common Stock
(Cost $99)				56
MONEY MARKET FUND — 0.1%
PNC Government Money Market Fund,
Class I Shares 0.080%† (E)		13,399		13
Total Money Market Fund
(Cost $13)				13
Total Investments Before Short-Term Investments Purchased with
Collateral from Securities Loaned — 98.4%
(Cost $13,341)				13,258
SHORT-TERM INVESTMENTS PURCHASED WITH
COLLATERAL FROM SECURITIES LOANED — 1.6%
Affiliated Money Market Fund — 1.4%
PNC Government Money Market Fund,
Class I Shares 0.080%† (E)		194,284		194
Money Market Fund — 0.2%
Morgan Stanley Institutional Liquidity Funds Government Portfolio,
Institutional Class 0.250% (E)		24,506		25
Total Short-Term Investments Purchased With Collateral From
Securities Loaned
(Cost $219)‡				219
TOTAL INVESTMENTS — 100.0%
(Cost $13,560)**				13,477
Other Assets & Liabilities — 0.0%				2
TOTAL NET ASSETS — 100.0%			$	13,479

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $13,563.

Gross unrealized appreciation (000)	$	337
Gross unrealized depreciation (000)		(423	)
Net unrealized depreciation (000)	$	(86	)

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $212 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Security fair valued using methods approved by the Board of Trustees. (B) Illiquid Security. Total value of illiquid securities is $0 (000) and represents less than 0.1% of net assets as of May 31, 2016.

(C) Security in default.

(D) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(E) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $3,729 (000) and represents 27.7% of net assets as of May 31, 2016.

See Notes to Financial Statements.

206

P N C  H i g h  Y i e l d  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stock		$	56		$	–		$	–		$	56
Corporate Bonds			–			13,189			–			13,189
Money Market Fund			13			–			–			13
Short-Term Investments Purchased With Collateral From Securities Loaned			219			–			–			219
Total Assets - Investments in Securities		$	288		$	13,189		$	–		$	13,477
Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:
	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	219		$	–		$	219
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	219		$	–		$	219

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

207

P N C  I n t e r m e d i a t e  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
ASSET-BACKED SECURITIES — 14.8%
Automotive — 6.7%
Fifth Third Auto Trust,
Series 2015-1, Cl A3
1.420%, 03/16/20	$	3,000	$	3,008
Ford Credit Auto Owner Trust,
Series 2014-C, Cl A3
1.060%, 05/15/19		2,985		2,985
Ford Credit Auto Owner Trust,
Series 2015-A, Cl A3
1.280%, 09/15/19		1,125		1,127
Honda Auto Receivables Owner Trust,
Series 2013-3, Cl A3
0.770%, 05/15/17		56		57
Honda Auto Receivables Owner Trust,
Series 2015-1, Cl A3
1.050%, 10/15/18		790		790
Honda Auto Receivables Owner Trust,
Series 2015-4, Cl A3
1.230%, 09/23/19		640		640
Hyundai Auto Receivables Trust,
Series 2013-B, Cl A3
0.710%, 09/15/17		8		8
Hyundai Auto Receivables Trust,
Series 2013-B, Cl A4
1.010%, 02/15/19		2,480		2,480
Hyundai Auto Receivables Trust,
Series 2015-A, Cl A3
1.050%, 04/15/19		1,165		1,165
Mercedes-Benz Auto Receivables Trust,
Series 2015-1, Cl A2A
0.820%, 06/15/18		1,900		1,899
Nissan Auto Receivables Owner Trust,
Series 2015-C Cl A3
1.370%, 05/15/20		1,175		1,177
Toyota Auto Receivables Owner Trust,
Series 2015-C, Cl A3
1.340%, 06/17/19		2,590		2,597
Toyota Auto Receivables Owner Trust,
Series 2013-B, Cl A3
0.890%, 07/17/17		3		3
Volkswagen Auto Lease Trust,
Series 2015-A, Cl A3
1.250%, 12/20/17		1,654		1,649
Volkswagen Auto Loan Enhanced Trust,
Series 2013-1, Cl A3
0.560%, 08/21/17		129		129
				19,714
Credit Cards — 7.0%
American Express Credit Account Master Trust,
Series 2014-3, Cl A
1.490%, 04/15/20		3,295		3,311
BA Credit Card Trust,
Series 2015-A2, Cl A
1.360%, 09/15/20		1,655		1,659
Capital One Multi-Asset Execution Trust,
Series 2014-A5, Cl A5
1.480%, 07/15/20		2,590		2,603
Capital One Multi-Asset Execution Trust,
Series 2015-A1, Cl A1

	Par		Value
	(000)		(000)
1.390%, 01/15/21	$	2,610	$	2,614
Chase Issuance Trust,
Series 2015-A2, Cl A2
1.590%, 02/18/20		4,225		4,253
Citibank Credit Card Issuance Trust,
Series 2013-A3, Cl A3
1.110%, 07/23/18		1,405		1,406
Citibank Credit Card Issuance Trust,
Series 2014-A2, Cl A2
1.020%, 02/22/19		2,000		2,001
Synchrony Credit Card Master Note Trust,
Series 2012-2, Cl A
2.220%, 01/15/22		850		861
Synchrony Credit Card Master Note Trust,
Series 2012-6, Cl A
1.360%, 08/17/20		1,825		1,826
				20,534
Equipment — 0.8%
John Deere Owner Trust,
Series 2014-B, Cl A3
1.070%, 11/15/18		1,710		1,710
John Deere Owner Trust,
Series 2016-A, Cl A3
1.360%, 04/15/20		645		643
				2,353
Financials — 0.1%
GS Mortgage Securities Trust,
Series 2011-GC5, Cl A2
2.999%, 08/10/44		436		436
Utilities — 0.2%
CenterPoint Energy Transition Bond LLC,
Series 2012-1, Cl A2
2.161%, 10/15/21		640		650
Total Asset-Backed Securities
(Cost $43,632)				43,687
CORPORATE BONDS — 37.5%
Automotive — 1.4%
Ford Motor Credit LLC
3.000%, 06/12/17		1,000		1,014
General Motors Financial
3.200%, 07/13/20		1,500		1,514
PACCAR Financial (MTN)
1.280%, 12/06/18 (A)		800		802
Volkswagen Group of America Finance LLC
1.024%, 05/23/17 (A) 144A		855		849
				4,179
Cable — 1.1%
Discovery Communications LLC
3.300%, 05/15/22		1,040		1,034
Thomson Reuters
3.850%, 09/29/24		1,300		1,351
Time Warner
3.400%, 06/15/22		750		777
				3,162

See Notes to Financial Statements.

208

P N C  I n t e r m e d i a t e  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Consumer Discretionary — 0.8%
Carnival
3.950%, 10/15/20	$	845	$	901
Hasbro
6.300%, 09/15/17		1,431		1,516
				2,417
Energy — 3.4%
Chevron
2.411%, 03/03/22		930		932
ConocoPhillips
2.875%, 11/15/21		1,315		1,321
Energy Transfer Partners LP
4.050%, 03/15/25		1,725		1,588
EQT
5.150%, 03/01/18		495		503
4.875%, 11/15/21		1,145		1,160
Exxon Mobil
0.674%, 03/15/17 (A)		2,150		2,149
1.453%, 03/01/19 (A)		435		440
Kinder Morgan Energy Partners LP
4.150%, 03/01/22		1,176		1,160
Petroleos Mexicanos
3.500%, 07/23/20		300		294
Petroleos Mexicanos (GMTN)
4.250%, 01/15/25		410		383
				9,930
Financials — 15.4%
American Express
3.625%, 12/05/24		875		882
American Express Credit
1.148%, 07/29/16 (A)		1,155		1,156
American Honda Finance (GMTN)
1.127%, 10/07/16 (A)		1,250		1,252
American Honda Finance (MTN)
2.250%, 08/15/19		530		543
Bank of America (MTN)
5.625%, 07/01/20		825		923
4.000%, 04/01/24		680		716
4.200%, 08/26/24		1,330		1,358
Bank of Montreal (MTN)
0.880%, 07/14/17 (A)		1,500		1,499
BankUnited
4.875%, 11/17/25		690		695
BB&T (MTN)
6.850%, 04/30/19		10		11
3.950%, 03/22/22		1,250		1,332
BBVA Bancomer SA
4.375%, 04/10/24 144A		1,270		1,308
BNP Paribas SA (MTN)
1.250%, 12/12/16		15		15
2.700%, 08/20/18		710		725
Capital One Financial
3.500%, 06/15/23		1,745		1,784
Citigroup
2.050%, 12/07/18		1,045		1,049
4.600%, 03/09/26		605		628
4.450%, 09/29/27		320		324
Credit Suisse Group Funding Guernsey
3.750%, 03/26/25		1,090		1,067

	Par		Value
	(000)		(000)
Deutsche Bank AG
1.350%, 05/30/17	$	980	$	976
Deutsche Bank AG (GMTN)
2.850%, 05/10/19		465		465
GE Capital International Funding
3.373%, 11/15/25 144A		583		619
Goldman Sachs Group
6.250%, 09/01/17		725		765
5.750%, 01/24/22		780		894
HSBC Bank USA NA
4.875%, 08/24/20		1,215		1,308
HSBC Holdings PLC
4.300%, 03/08/26		420		439
John Deere Capital
1.201%, 01/08/19 (A)		1,640		1,649
John Deere Capital (MTN)
2.450%, 09/11/20		685		699
JPMorgan Chase
6.125%, 06/27/17		411		431
4.625%, 05/10/21		865		950
3.375%, 05/01/23		1,585		1,594
Lloyds Bank PLC
1.750%, 05/14/18		1,375		1,373
Morgan Stanley (GMTN)
2.125%, 04/25/18		1,000		1,008
4.875%, 11/01/22		995		1,079
MUFG Americas Holdings
3.500%, 06/18/22		1,400		1,446
Royal Bank of Canada
1.200%, 09/19/17		1,560		1,557
1.875%, 02/05/20		2,400		2,408
Santander UK Group Holdings PLC
2.875%, 10/16/20		1,205		1,199
Svenska Handelsbanken AB
3.125%, 07/12/16		660		662
Toronto-Dominion Bank (GMTN)
2.125%, 07/02/19		1,240		1,255
US Bancorp (MTN)
2.950%, 07/15/22		1,190		1,221
Visa
2.800%, 12/14/22		895		926
Wells Fargo (MTN)
3.300%, 09/09/24		870		897
4.100%, 06/03/26		850		896
Westpac Banking
2.600%, 11/23/20		1,440		1,469
				45,452
Food, Beverage & Tobacco — 0.9%
Anheuser-Busch InBev Finance
3.700%, 02/01/24		1,090		1,165
3.650%, 02/01/26		675		701
Coca-Cola
0.737%, 11/01/16 (A)		860		860
				2,726
Healthcare — 2.5%
AbbVie
1.750%, 11/06/17		1,087		1,089
3.200%, 05/14/26		720		714
Actavis Funding SCS
3.450%, 03/15/22		1,735		1,761

See Notes to Financial Statements.

209

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Healthcare — continued
Aetna
1.500%, 11/15/17	$	1,658	$	1,658
Mylan NV
2.500%, 06/07/19 144A		750		751
Teva Pharmaceutical Finance BV
2.950%, 12/18/22		1,535		1,523
				7,496
Industrials — 0.3%
Avnet
4.625%, 04/15/26		760		769
Insurance — 1.5%
Assurant
2.500%, 03/15/18		800		807
Berkshire Hathaway
3.750%, 08/15/21#		1,605		1,755
MetLife
4.368%, 09/15/23		645		706
3.600%, 11/13/25		410		425
XLIT
2.300%, 12/15/18		805		809
				4,502
Materials — 0.3%
Cytec Industries
3.950%, 05/01/25		910		886
Real Estate Investment Trusts — 1.9%
American Campus Communities Operating Partnership LP
3.750%, 04/15/23		1,570		1,590
Digital Realty Trust LP
5.250%, 03/15/21		690		762
Host Hotels & Resorts LP
3.750%, 10/15/23		975		964
Realty Income
3.250%, 10/15/22		1,405		1,408
Ventas Realty LP
3.500%, 02/01/25		895		895
				5,619
Retail — 1.3%
CVS Health
3.500%, 07/20/22		1,385		1,461
Expedia
5.000%, 02/15/26 144A		655		655
Lowe’s
1.055%, 09/10/19 (A)		460		461
Priceline Group
3.650%, 03/15/25		440		448
3.600%, 06/01/26		670		673
				3,698
Technology — 2.0%
Apple
2.400%, 05/03/23		1,465		1,463
Intel
2.700%, 12/15/22		715		737
KLA-Tencor
4.125%, 11/01/21		1,750		1,850

	Par		Value
	(000)		(000)
Oracle
2.500%, 05/15/22	$	1,185	$	1,204
Xilinx
3.000%, 03/15/21		605		626
				5,880
Telecommunications — 2.0%
AT&T
4.600%, 02/15/21		1,980		2,150
Charter Communications Operating LLC
4.464%, 07/23/22 144A		1,400		1,475
Cisco Systems
0.961%, 03/03/17 (A)		590		591
1.254%, 02/21/18 (A)		890		896
Verizon Communications
5.150%, 09/15/23		650		746
				5,858
Utilities — 2.7%
Berkshire Hathaway Energy
3.500%, 02/01/25		1,530		1,613
Duke Energy
5.050%, 09/15/19		1,385		1,522
Exelon Generation LLC
4.000%, 10/01/20#		1,780		1,876
Metropolitan Edison
7.700%, 01/15/19		900		1,015
Xcel Energy
4.700%, 05/15/20		1,761		1,916
				7,942
Total Corporate Bonds
(Cost $108,631)				110,516
REGIONAL BOND — 0.3%
Canada — 0.3%
Province of Quebec
2.500%, 04/20/26		945		944
Total Regional Bond
(Cost $942)				944
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — 3.0%
Federal National Mortgage Association — 3.0%
4.000%, 12/01/45		2,715		2,899
3.500%, 07/01/43		2,791		2,925
3.000%, 01/01/31		2,853		2,974
				8,798
Total U.S. Government Agency Mortgage-Backed Obligations
(Cost $8,829)				8,798
U.S. TREASURY OBLIGATIONS — 42.5%
U.S. Treasury Notes — 42.5%
2.625%, 08/15/20		18,355		19,344
2.625%, 11/15/20		30		32
2.500%, 08/15/23		5,510		5,822
2.375%, 08/15/24		3,060		3,203
2.250%, 11/15/24		4,165		4,317
2.250%, 11/15/25		1,890		1,957
2.125%, 08/15/21		9,584		9,912

See Notes to Financial Statements.

210

P N C  I n t e r m e d i a t e  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
U.S. TREASURY OBLIGATIONS — continued
U.S. Treasury Notes — continued
2.125%, 05/15/25	$	9,770	$	10,020
2.000%, 02/28/21		11,620		11,955
1.750%, 10/31/20		5,910		6,013
1.625%, 07/31/19		11,535		11,735
1.625%, 12/31/19		1,215		1,234
1.625%, 08/15/22		5,260		5,275
1.250%, 01/31/19		14,030		14,125
1.250%, 10/31/19		5,730		5,756
1.000%, 03/31/17		745		747
1.000%, 12/15/17		10,935		10,961
1.000%, 02/15/18		2,650		2,656
0.875%, 08/15/17		465		465
				125,529
Total U.S. Treasury Obligations
(Cost $124,328)				125,529
	Number of Shares
MONEY MARKET FUND — 1.5%
PNC Government Money Market Fund,
Class I Shares 0.080%† (B)		4,410,674		4,411
Total Money Market Fund
(Cost $4,411)				4,411
Total Investments Before Short-Term Investments Purchased with
Collateral from Securities Loaned – 99.6%
(Cost $290,773)				293,885
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 1.2%
Affiliated Money Market Fund — 1.1%
PNC Government Money Market Fund,
Class I Shares 0.080%† (B)		3,271,970		3,272
Money Market Fund — 0.1%
Morgan Stanley Institutional Liquidity Funds
Government Portfolio,
Institutional Class 0.250% (B)		412,714		413
Total Short-Term Investments Purchased With Collateral From
Securities Loaned
(Cost $3,685)‡				3,685
TOTAL INVESTMENTS — 100.8%
(Cost $294,458)*				297,570
Other Assets & Liabilities – (0.8)%				(2,469	)
TOTAL NET ASSETS — 100.0%			$	295,101

* Aggregate cost for Federal income tax purposes is (000) $294,552.

Gross unrealized appreciation (000)	$3,500
Gross unrealized depreciation (000)	(482	)
Net unrealized appreciation (000)	$3,018

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $3,595 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(B) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $5,657 (000) and represents 1.9% of net assets as of May 31, 2016.

See Notes to Financial Statements.

211

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Asset-Backed Securities		$	–		$	43,687		$	–		$	43,687
Corporate Bonds			–			110,516			–			110,516
Money Market Fund			4,411			–			–			4,411
Regional Bond			–			944			–			944
Short-Term Investments Purchased With Collateral From Securities Loaned			3,685			–			–			3,685
U.S. Government Agency Mortgage- Backed Obligations			–			8,798			–			8,798
U.S. Treasury Obligations			–			125,529			–			125,529
Total Assets - Investments in Securities		$	8,096		$	289,474		$	–		$	297,570

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	3,685		$	–		$	3,685
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	3,685		$	–		$	3,685

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

212

P N C  L i m i t e d  M a t u r i t y  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
ASSET-BACKED SECURITIES — 22.0%
Automotive — 12.0%
BMW Vehicle Owner Trust,
Series 2013-A, Cl A3
0.670%, 11/27/17	$	983	$	982
Fifth Third Auto Trust,
Series 2015-1, Cl A3
1.420%, 03/16/20		2,360		2,366
Ford Credit Auto Owner Trust,
Series 2015-A, Cl A3
1.280%, 09/15/19		2,890		2,896
Ford Credit Auto Owner Trust,
Series 2016-A, Cl A3
1.390%, 07/15/20		3,100		3,101
Honda Auto Receivables Owner Trust,
Series 2015-1, Cl A3
1.050%, 10/15/18		2,865		2,865
Honda Auto Receivables Owner Trust,
Series 2015-4, Cl A3
1.230%, 09/23/19		3,085		3,084
Hyundai Auto Receivables Trust,
Series 2015-A, Cl A4
1.370%, 07/15/20		2,515		2,513
Hyundai Auto Receivables Trust,
Series 2015-C, Cl A3
1.460%, 02/18/20		1,900		1,904
Nissan Auto Receivables Owner Trust,
Series 2013-B, Cl A4
1.310%, 10/15/19		4,150		4,158
Nissan Auto Receivables Owner Trust,
Series 2015-B, Cl A3
1.340%, 03/16/20		4,130		4,137
Toyota Auto Receivables Owner Trust,
Series 2015-A, Cl A3
1.120%, 02/15/19		2,280		2,280
Toyota Auto Receivables Owner Trust,
Series 2016-A, Cl A3
1.250%, 03/16/20		2,260		2,261
Volkswagen Auto Lease Trust,
Series 2015-A, Cl A3
1.250%, 12/20/17		1,305		1,301
Volkswagen Auto Loan Enhanced Trust,
Series 2013-2, Cl A3
0.700%, 04/20/18		1,347		1,343
				35,191
Credit Cards — 7.4%
American Express Credit Account Master Trust,
Series 2014-4, Cl A
1.430%, 06/15/20		4,080		4,097
BA Credit Card Trust,
Series 2015-A2, Cl A
1.360%, 09/15/20		4,255		4,267
Capital One Multi-Asset Execution Trust,
Series 2014-A5, Cl A5
1.480%, 07/15/20		4,220		4,241
Chase Issuance Trust,
Series 2015-A7, Cl A7
1.620%, 07/15/20		4,860		4,898

	Par (000)		Value (000)
Citibank Credit Card Issuance Trust,
Series 2014-A8, Cl A8
1.730%, 04/09/20	$	4,265	$	4,303
				21,806
Equipment — 2.2%
John Deere Owner Trust,
Series 2014-B, Cl A3
1.070%, 11/15/18		4,292		4,291
John Deere Owner Trust,
Series 2016-A, Cl A3
1.360%, 04/15/20		2,060		2,053
				6,344
Utilities — 0.4%
CenterPoint Energy Transition Bond LLC,
Series 2012-1, Cl A1
0.901%, 04/15/18		1,038		1,037
Total Asset-Backed Securities
(Cost $64,320)				64,378
COLLATERALIZED MORTGAGE OBLIGATIONS — 4.6%
Fannie Mae, Series 2003-86, Cl PY
4.500%, 09/25/18		623		639
Fannie Mae, Series 2003-97, Cl DG
5.000%, 10/25/18		437		449
Fannie Mae, Series 2014-33, Cl AH
3.000%, 06/25/29		2,811		2,921
Freddie Mac, Series 2682, Cl LC
4.500%, 07/15/32		166		167
Freddie Mac, Series 2828, Cl JE
4.500%, 07/15/19		664		685
Freddie Mac, Series 3535, Cl CA
4.000%, 05/15/24		172		176
Freddie Mac, Series 3564, Cl JA
4.000%, 01/15/18		520		531
Freddie Mac, Series 3693, Cl BD
3.000%, 07/15/25		2,429		2,523
Freddie Mac, Series 3741, Cl PA
2.150%, 02/15/35		3,134		3,162
Freddie Mac, Series 3786, Cl GN
4.000%, 08/15/35		959		988
Freddie Mac, Series 4266, Cl LG
2.500%, 06/15/28		1,310		1,340
Ginnie Mae, Series 1998-GN1, Cl A
7.110%, 08/25/27 (A)		–		–
Total Collateralized Mortgage Obligations
(Cost $13,633)				13,581
CORPORATE BONDS — 32.9%
Automotive — 3.5%
American Honda Finance (MTN)
1.600%, 07/13/18		2,085		2,097
Daimler Finance North America LLC
1.650%, 03/02/18 144A		2,150		2,155
Ford Motor Credit LLC
2.375%, 01/16/18		1,500		1,512
Hyundai Capital America (MTN)
2.000%, 03/19/18 144A		1,835		1,837

See Notes to Financial Statements.

213

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Automotive — continued
Volkswagen Group of America Finance LLC
1.250%, 05/23/17 144A	$	1,950	$	1,943
1.650%, 05/22/18 144A		825		819
				10,363
Cable — 0.3%
Thomson Reuters
1.300%, 02/23/17		210		210
1.650%, 09/29/17		605		606
				816
Consumer Discretionary — 0.3%
Carnival
1.875%, 12/15/17		870		875
Energy — 2.1%
BP Capital Markets PLC
1.674%, 02/13/18		1,660		1,665
Enterprise Products Operating LLC
1.650%, 05/07/18		1,420		1,417
Kinder Morgan
2.000%, 12/01/17		1,695		1,676
Marathon Petroleum
2.700%, 12/14/18		600		608
TransCanada PipeLines
1.875%, 01/12/18		953		953
				6,319
Financials — 16.1%
American Express
7.000%, 03/19/18		700		765
American Express Credit (MTN)
1.550%, 09/22/17		520		521
1.800%, 07/31/18		1,625		1,633
Bank of America (MTN)
2.650%, 04/01/19		2,075		2,112
Bank of America NA
5.300%, 03/15/17		1,671		1,722
BNP Paribas SA (MTN)
1.375%, 03/17/17		1,100		1,102
2.375%, 09/14/17		1,185		1,198
Capital One NA
1.500%, 03/22/18		2,350		2,336
Citigroup
2.500%, 09/26/18		3,065		3,111
Commonwealth Bank of Australia (GMTN)
1.625%, 03/12/18		785		789
2.050%, 03/15/19		1,935		1,949
Cooperatieve Rabobank UA
3.375%, 01/19/17		2,200		2,233
Credit Suisse (GMTN)
1.375%, 05/26/17		1,450		1,450
1.750%, 01/29/18		450		451
Deutsche Bank AG
1.400%, 02/13/17		1,400		1,398
1.350%, 05/30/17		1,700		1,694
Goldman Sachs Group
2.375%, 01/22/18		2,500		2,527
HSBC USA
1.625%, 01/16/18		2,040		2,040
JPMorgan Chase
1.625%, 05/15/18		3,100		3,098

	Par		Value
	(000)		(000)
Lloyds Bank PLC
1.750%, 03/16/18	$	1,225	$	1,224
1.750%, 05/14/18		510		509
Morgan Stanley (GMTN)
2.125%, 04/25/18		2,390		2,409
MUFG Americas Holdings
1.625%, 02/09/18		535		533
National Australia Bank (GMTN)
2.000%, 01/14/19		1,860		1,870
Royal Bank of Canada
1.200%, 09/19/17		2,080		2,075
Santander UK PLC
2.500%, 03/14/19		3,040		3,090
Toronto-Dominion Bank (GMTN)
1.750%, 07/23/18		980		986
UBS AG (GMTN)
1.375%, 08/14/17		700		700
1.800%, 03/26/18		635		638
Wells Fargo
2.150%, 01/15/19		700		709
Westpac Banking
1.200%, 05/19/17		360		360
				47,232
Food, Beverage & Tobacco — 1.6%
Anheuser-Busch Inbev Finance
1.900%, 02/01/19		875		879
Diageo Capital PLC
5.750%, 10/23/17		1,600		1,699
Kellogg
1.750%, 05/17/17		1,180		1,186
Kraft Heinz Foods
2.000%, 07/02/18 144A		875		882
				4,646
Healthcare — 3.1%
AbbVie
1.800%, 05/14/18		1,595		1,598
Actavis Funding SCS
1.300%, 06/15/17		1,690		1,685
Cardinal Health
1.950%, 06/15/18		1,300		1,310
Celgene
2.125%, 08/15/18		1,500		1,515
Stryker
2.000%, 03/08/19		1,450		1,464
Teva Pharmaceutical Finance BV
2.400%, 11/10/16		1,450		1,458
				9,030
Insurance — 0.3%
XLIT
2.300%, 12/15/18		990		995
Materials — 0.5%
Rio Tinto Finance USA PLC
1.375%, 06/17/16		1,415		1,415
Real Estate Investment Trusts — 1.0%
Boston Properties LP
3.700%, 11/15/18		1,435		1,499

See Notes to Financial Statements.

214

P N C  L i m i t e d  M a t u r i t y  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Real Estate Investment Trusts — continued
Realty Income
2.000%, 01/31/18	$	1,411	$	1,416
				2,915
Retail — 0.7%
McDonald’s (MTN)
5.350%, 03/01/18		397		424
Walgreens Boots Alliance
1.750%, 11/17/17		1,505		1,512
				1,936
Technology — 1.1%
Amphenol
1.550%, 09/15/17		1,870		1,866
Xilinx
2.125%, 03/15/19		1,292		1,300
				3,166
Telecommunications — 1.5%
AT&T
5.500%, 02/01/18		2,110		2,245
Verizon Communications
1.350%, 06/09/17		2,260		2,267
				4,512
Utilities — 0.8%
Duke Energy
5.050%, 09/15/19		835		917
NextEra Energy Capital Holdings
2.300%, 04/01/19		1,470		1,485
				2,402
Total Corporate Bonds
(Cost $96,297)				96,622
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — 2.7%
Federal Home Loan Mortgage Corporation — 0.4%
6.000%, 05/01/21		99		103
5.500%, 03/01/22		147		158
5.500%, 04/01/22		192		208
4.500%, 02/01/19		99		101
4.500%, 05/01/19		343		351
2.598%, 03/01/36 (B)		275		291
				1,212
Federal National Mortgage Association — 2.3%
6.000%, 09/01/16		3		3
5.500%, 09/01/17		32		32
5.500%, 10/01/17		19		19
5.500%, 11/01/18		68		70
5.000%, 06/01/18		59		61
5.000%, 12/01/21		102		105
4.500%, 06/01/21		293		301
4.000%, 08/01/21		240		251
3.500%, 01/01/24		1,930		2,038
3.500%, 06/01/26		3,023		3,192
2.575%, 01/01/36 (B)		266		279

	Par		Value
	(000)		(000)
2.505%, 09/01/36 (B)	$	347	$	367
				6,718
Total U.S. Government Agency Mortgage-Backed Obligations
(Cost $7,788)				7,930
U.S. TREASURY OBLIGATIONS — 36.7%
U.S. Treasury Notes — 36.7%
1.500%, 12/31/18		9,650		9,779
1.375%, 06/30/18		12,220		12,336
1.375%, 09/30/18		11,635		11,750
1.250%, 11/15/18		11,685		11,765
1.000%, 05/31/18		1,225		1,228
0.875%, 08/15/17		5,895		5,902
0.875%, 01/31/18		4,605		4,607
0.875%, 04/15/19		6,230		6,203
0.750%, 10/31/17		10,490		10,479
0.750%, 03/31/18		14,680		14,647
0.750%, 02/15/19		9,925		9,859
0.625%, 09/30/17		9,200		9,178
Total U.S. Treasury Obligations
(Cost $107,668)				107,733
	Number of Shares
MONEY MARKET FUND — 1.0%
PNC Government Money Market Fund,
Class I Shares 0.080%† (C)		2,872,059		2,872
Total Money Market Fund
(Cost $2,872)				2,872
TOTAL INVESTMENTS — 99.9%
(Cost $292,578)*				293,116
Other Assets & Liabilities – 0.1%				334
TOTAL NET ASSETS — 100.0%			$	293,450

* Aggregate cost for Federal income tax purposes is (000) $292,591.

Gross unrealized appreciation (000)	$790
Gross unrealized depreciation (000)	(265	)
Net unrealized appreciation (000)	$525

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) Par and Value are less than $500.

(B) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(C) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $7,636 (000) and represents 2.6% of net assets as of May 31, 2016.

See Notes to Financial Statements.

215

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Asset-Backed Securities		$	–		$	64,378		$	–		$	64,378
Collateralized Mortgage Obligations			–			13,581			–			13,581
Corporate Bonds			–			96,622			–			96,622
Money Market Fund			2,872			–			–			2,872
U.S. Government Agency Mortgage-Backed Obligations			–			7,930			–			7,930
U.S. Treasury Obligations			–			107,733			–			107,733
Total Assets - Investments in Securities		$	2,872		$	290,244		$	–		$	293,116

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

216

P N C  T o t a l  R e t u r n  A d v a n t a g e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
ASSET-BACKED SECURITIES — 7.5%
Automotive — 3.6%
Fifth Third Auto Trust,
Series 2015-1, Cl A3
1.420%, 03/16/20	$	755	$	757
Ford Credit Auto Lease Trust,
Series 2016-A, Cl A2A
1.420%, 11/15/18		745		746
Ford Credit Auto Owner Trust,
Series 2016-A, CL A3
1.390%, 07/15/20		185		185
Honda Auto Receivables Owner Trust,
Series 2014-3, Cl A3
0.880%, 06/15/18		596		596
Hyundai Auto Receivables Trust,
Series 2015-A, Cl A2
0.680%, 10/16/17		196		196
Hyundai Auto Receivables Trust,
Series 2015-B, Cl A2A
0.690%, 04/16/18		850		850
Mercedes-Benz Auto Receivables Trust,
Series 2015-1, Cl A2A
0.820%, 06/15/18		1,263		1,262
Nissan Auto Receivables Owner Trust,
Series 2015-B, Cl A3
1.340%, 03/16/20		1,935		1,939
				6,531
Credit Cards — 2.8%
American Express Credit Account Master Trust,
Series 2014-3, Cl A
1.490%, 04/15/20		1,210		1,216
BA Credit Card Trust,
Series 2015-A2, Cl A
1.360%, 09/15/20		2,005		2,011
Capital One Multi-Asset Execution Trust,
Series 2014-A5, Cl A5
1.480%, 07/15/20		1,080		1,085
Synchrony Credit Card Master Note Trust,
Series 2012-6, Cl A
1.360%, 08/17/20		865		865
				5,177
Equipment — 0.5%
John Deere Owner Trust,
Series 2014-B, Cl A3
1.070%, 11/15/18		892		892
Utilities — 0.6%
Atlantic City Electric Transition Funding LLC,
Series 2002-1, Cl A4
5.550%, 10/20/23		922		1,012
Total Asset-Backed Securities
(Cost $13,511)				13,612

	Par		Value
	(000)		(000)
COMMERCIAL MORTGAGE-BACKED SECURITY — 0.0%
Morgan Stanley Capital I Trust,
Series 2007-HQ11, Cl A31
5.439%, 02/12/44	$	51	$	51
Total Commercial Mortgage-Backed Security
(Cost $40)				51
CORPORATE BONDS — 34.3%
Aerospace — 0.8%
Lockheed Martin
3.800%, 03/01/45		765		745
Spirit AeroSystems
6.750%, 12/15/20		640		664
				1,409
Automotive — 1.3%
Ford Motor Credit LLC (MTN)
1.082%, 11/08/16 (A)		700		700
General Motors
6.600%, 04/01/36		115		131
General Motors Financial
3.200%, 07/13/20		545		550
Lear
5.375%, 03/15/24		495		524
Volkswagen Group of America Finance LLC
1.024%, 05/23/17 (A) 144A		500		496
				2,401
Cable — 2.4%
21st Century Fox America
8.450%, 08/01/34		760		1,096
Belo
7.750%, 06/01/27		435		459
Charter Communications Operating LLC
6.384%, 10/23/35 144A		675		768
CSC Holdings LLC
8.625%, 02/15/19		200		221
Discovery Communications LLC
4.900%, 03/11/26		330		348
3.250%, 04/01/23		500		484
Sinclair Television Group
6.375%, 11/01/21		260		274
Time Warner Cable
4.500%, 09/15/42		515		459
Time Warner Entertainment LP
8.375%, 03/15/23		135		172
				4,281
Consumer Discretionary — 0.3%
Hasbro
6.300%, 09/15/17		535		567
Consumer Services — 1.1%
Avon Products
6.750%, 03/15/23		405		303
DreamWorks Animation SKG
6.875%, 08/15/20 144A		375		398
Graham Holdings
7.250%, 02/01/19		375		408
H&E Equipment Services
7.000%, 09/01/22#		175		180

See Notes to Financial Statements.

217

	Par (000)		Value (000)
CORPORATE BONDS — continued
Consumer Services — continued
Royal Caribbean Cruises
7.500%, 10/15/27	$	327	$	380
Sotheby’s
5.250%, 10/01/22 144A		272		265
				1,934
Energy — 4.1%
Anadarko Petroleum
4.850%, 03/15/21		135		140
Boardwalk Pipelines LP
5.950%, 06/01/26		95		95
3.375%, 02/01/23		625		549
Burlington Resources Finance
7.200%, 08/15/31		375		453
Cloud Peak Energy Resources LLC
8.500%, 12/15/19		595		266
ConocoPhillips
6.500%, 02/01/39		185		228
Energy Transfer Partners LP
6.125%, 12/15/45		245		230
EQT
4.875%, 11/15/21		915		927
Freeport-McMoran Oil & Gas LLC
6.875%, 02/15/23		375		349
Kinder Morgan Energy Partners LP
6.500%, 04/01/20		270		293
Kinder Morgan Energy Partners LP (MTN)
6.950%, 01/15/38		525		544
McDermott International
8.000%, 05/01/21 144A		285		250
Newfield Exploration
5.375%, 01/01/26		280		273
Peabody Energy
10.000%, 03/15/22 (B) 144A		250		36
Petroleos Mexicanos
6.000%, 03/05/20		225		239
Petroleos Mexicanos (GMTN)
4.250%, 01/15/25		165		154
PHI
5.250%, 03/15/19		155		139
Phillips 66
4.650%, 11/15/34		485		490
Rowan
4.875%, 06/01/22		635		497
4.750%, 01/15/24		305		232
Tesoro
5.375%, 10/01/22		500		510
Williams Partners LP
4.125%, 11/15/20		500		469
				7,363
Financials — 10.2%
American Express
6.800%, 09/01/66 (A)		475		476
American Express Credit (GMTN)
2.250%, 08/15/19		635		644
American Express Credit (MTN)
2.375%, 05/26/20		55		56
Bank of America
6.250%, 09/29/49 (A)		460		471

	Par (000)		Value (000)
Bank of America (MTN)
5.625%, 07/01/20	$	700	$	783
4.200%, 08/26/24		495		505
4.000%, 04/01/24		175		184
BankUnited
4.875%, 11/17/25		375		378
BBVA Bancomer SA
4.375%, 04/10/24 144A		650		669
Citigroup
6.250%, 12/29/49 (A)		340		351
4.450%, 09/29/27		940		953
2.150%, 07/30/18		230		232
2.050%, 12/07/18		300		301
Credit Suisse AG (GMTN)
5.400%, 01/14/20		515		558
Discover Bank
3.100%, 06/04/20		250		254
Goldman Sachs Group
6.250%, 09/01/17		480		507
5.750%, 01/24/22		435		499
HSBC Bank USA NA
4.875%, 08/24/20		675		726
HSBC Holdings PLC
6.375%, 12/29/49# (A)		500		479
5.250%, 03/14/44		500		525
International Lease Finance
3.875%, 04/15/18		365		370
JPMorgan Chase
7.900%, 12/29/49 (A)		615		629
4.625%, 05/10/21		540		593
3.375%, 05/01/23		465		468
Lloyds Banking Group PLC
4.650%, 03/24/26		500		506
Morgan Stanley (GMTN)
4.875%, 11/01/22		560		608
2.125%, 04/25/18		930		937
Royal Bank of Canada
1.200%, 09/19/17		1,250		1,247
Royal Bank of Scotland Group PLC
5.125%, 05/28/24		650		642
State Street
5.250%, 12/29/49 (A)		350		357
Visa
4.150%, 12/14/35		945		1,029
Wells Fargo
7.980%, 03/29/49 (A)		125		132
5.900%, 12/29/49 (A)		545		565
Wells Fargo (MTN)
3.300%, 09/09/24		450		464
Westpac Banking
2.250%, 07/30/18		460		466
				18,564
Food, Beverage & Tobacco — 0.6%
Anheuser-Busch InBev Finance
4.900%, 02/01/46		595		663
Kraft Heinz Foods
5.200%, 07/15/45 144A		255		286
5.000%, 06/04/42		185		202
				1,151

See Notes to Financial Statements.

218

P N C  T o t a l  R e t u r n  A d v a n t a g e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Healthcare — 2.3%
Actavis Funding SCS
3.450%, 03/15/22	$	1,110	$	1,127
Amgen
4.400%, 05/01/45		775		772
DaVita HealthCare Partners
5.750%, 08/15/22		455		477
HCA
4.250%, 10/15/19		70		73
Johnson & Johnson
3.550%, 03/01/36		860		897
Select Medical
6.375%, 06/01/21		340		327
Teva Pharmaceutical Finance BV
2.950%, 12/18/22		520		516
				4,189
Industrials — 2.0%
Ball
5.250%, 07/01/25		180		187
4.000%, 11/15/23		375		367
Bombardier
7.750%, 03/15/20 144A		270		269
CNH Industrial Capital LLC
6.250%, 11/01/16		835		849
Crown Cork & Seal
7.375%, 12/15/26		150		165
General Electric
4.125%, 10/09/42		520		550
KLX
5.875%, 12/01/22 144A		425		415
Masco
7.750%, 08/01/29		125		145
3.500%, 04/01/21		80		81
Owens-Brockway Glass Container
6.375%, 08/15/25 144A		225		240
Owens-Illinois
7.800%, 05/15/18		10		11
PulteGroup
7.875%, 06/15/32		315		354
				3,633
Insurance — 0.8%
MetLife
6.400%, 12/15/36		460		494
Teachers Insurance & Annuity Association of America
4.900%, 09/15/44 144A		625		678
XLIT
4.450%, 03/31/25		330		326
				1,498
Materials — 0.2%
ArcelorMittal
7.250%, 02/25/22#		190		198
Freeport-McMoRan
3.550%, 03/01/22		225		189
				387
Real Estate Investment Trusts — 1.3%
American Campus Communities Operating
Partnership LP
4.125%, 07/01/24		875		904

	Par		Value
	(000)		(000)
Digital Realty Trust LP
5.250%, 03/15/21	$	425	$	469
Realty Income
3.250%, 10/15/22		960		962
				2,335
Retail — 2.2%
Expedia
5.000%, 02/15/26 144A		500		500
Hanesbrands
6.375%, 12/15/20		690		712
4.625%, 05/15/24 144A		175		175
Levi Strauss
6.875%, 05/01/22		250		267
Priceline Group
3.600%, 06/01/26		650		653
Wal-Mart Stores
5.625%, 04/01/40		700		899
5.250%, 09/01/35		540		680
				3,886
Technology — 2.2%
Activision Blizzard
5.625%, 09/15/21 144A		200		210
Apple
3.850%, 05/04/43		1,035		1,010
Avnet
4.875%, 12/01/22		580		621
4.625%, 04/15/26		430		435
KLA-Tencor
4.125%, 11/01/21		995		1,052
Oracle
4.300%, 07/08/34		630		671
				3,999
Telecommunications — 1.0%
AT&T
4.600%, 02/15/21		405		440
4.450%, 04/01/24		395		423
DigitalGlobe
5.250%, 02/01/21 144A		295		271
Verizon Communications
4.272%, 01/15/36		745		739
				1,873
Transportation — 1.0%
Burlington Northern Santa Fe LLC
4.550%, 09/01/44		620		676
ERAC USA Finance LLC
5.625%, 03/15/42 144A		500		580
FedEx
3.900%, 02/01/35		540		531
				1,787
Utilities — 0.5%
DPL
6.500%, 10/15/16		105		106
Exelon Generation LLC
4.000%, 10/01/20#		705		743

See Notes to Financial Statements.

219

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Utilities — continued
2.950%, 01/15/20	$	100	$	102
				951
Total Corporate Bonds
(Cost $61,311)				62,208
MUNICIPAL BOND — 0.5%
Texas — 0.5%
Texas Transportation Commission (RB) Series B
5.178%, 04/01/30		690		854
Total Municipal Bond
(Cost $748)				854
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — 28.7%
Federal Home Loan Mortgage Corporation — 2.6%
8.000%, 10/01/29		1		2
8.000%, 09/01/30 (C)		–		–
7.500%, 03/01/27		1		1
7.500%, 09/01/30		1		1
6.000%, 12/01/35		487		560
5.500%, 09/01/37		52		58
5.500%, 01/01/38		1		2
4.500%, 03/01/40		424		468
4.500%, 06/01/41		708		775
4.000%, 10/01/43		1,516		1,629
3.500%, 06/01/42		843		883
2.598%, 03/01/36 (A)		319		338
				4,717
Federal National Mortgage Association — 23.6%
8.000%, 08/01/27		16		18
8.000%, 09/01/27		3		3
7.500%, 08/01/26		2		2
7.500%, 10/01/27		9		10
7.500%, 04/01/31		3		3
7.500%, 08/01/31		3		4
7.000%, 04/01/27		2		2
7.000%, 11/01/27		5		6
7.000%, 04/01/29		2		2
7.000%, 08/01/32		1		1
5.500%, 05/01/33		2		3
5.500%, 04/01/34		246		278
5.500%, 06/01/34		11		12
5.500%, 03/01/36		9		10
5.500%, 07/01/37		10		12
5.500%, 05/01/38		15		17
5.000%, 07/01/33		18		20
5.000%, 08/01/37		254		283
5.000%, 03/01/40		296		330
5.000%, 07/01/40		44		49
5.000%, 08/01/40		488		543
4.500%, 02/01/39		303		330
4.500%, 06/01/39		269		296
4.500%, 10/01/39		44		47
4.500%, 05/01/40		1,791		1,961
4.500%, 07/01/40		6		7
4.500%, 11/01/40		986		1,075
4.500%, 02/01/41		133		145
4.500%, 08/01/41		18		20
4.000%, 10/01/25		389		413

	Par		Value
	(000)		(000)
4.000%, 11/01/40	$	1,099	$	1,177
4.000%, 01/01/41		64		69
4.000%, 02/01/41		1,348		1,443
4.000%, 11/01/41		21		22
4.000%, 12/01/41		45		48
4.000%, 01/01/42		55		60
4.000%, 02/01/42		1,388		1,483
4.000%, 07/01/42		1,398		1,498
4.000%, 08/01/42		787		842
4.000%, 07/01/45		1,288		1,375
4.000%, 11/01/45		1,702		1,818
3.500%, 02/01/26		269		284
3.500%, 09/01/26		22		23
3.500%, 11/01/26		296		312
3.500%, 01/01/28		1,506		1,590
3.500%, 11/01/29		1,098		1,159
3.500%, 03/01/41		1,676		1,756
3.500%, 01/01/42		34		35
3.500%, 06/01/42		1,351		1,420
3.500%, 08/01/42		2,345		2,462
3.500%, 09/01/42		41		43
3.500%, 10/01/42		1,390		1,456
3.500%, 11/01/42		39		41
3.500%, 06/01/43		1,321		1,385
3.500%, 07/01/43		1,665		1,744
3.500%, 12/01/45		2,814		2,945
3.000%, 06/01/27		868		906
3.000%, 10/01/27		687		717
3.000%, 11/01/29		487		507
3.000%, 11/01/42		2,113		2,169
3.000%, 04/01/43		2,725		2,796
3.000%, 05/01/43		1,221		1,253
2.500%, 11/01/27		1,999		2,058
				42,798
Government National Mortgage Association — 2.5%
10.000%, 05/15/19		1		1
9.500%, 03/15/20 (C)		–		–
9.000%, 11/15/16 (C)		–		–
9.000%, 11/15/19		1		1
9.000%, 05/15/21 (C)		–		–
9.000%, 06/15/21		5		5
9.000%, 08/15/21		5		5
9.000%, 09/15/21		9		9
8.500%, 08/15/27		13		13
8.000%, 09/15/27		6		6
7.500%, 08/15/29 (C)		–		–
7.500%, 10/15/29		21		22
7.500%, 12/15/29		1		2
7.000%, 02/15/17		5		5
7.000%, 05/20/24		1		1
7.000%, 04/15/26		1		1
7.000%, 10/15/27		21		22
7.000%, 12/15/27		2		2
7.000%, 04/15/28 (C)		–		–
7.000%, 04/15/29		2		2
4.500%, 06/15/41		–		1
4.500%, 10/20/45		1,486		1,597
4.000%, 09/15/41		1,364		1,463
3.500%, 07/15/42		1,280		1,352

See Notes to Financial Statements.

220

P N C  T o t a l  R e t u r n  A d v a n t a g e  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
U.S. GOVERNMENT AGENCY MORTGAGE- BACKED OBLIGATIONS — continued
Government National Mortgage Association — continued
3.500%, 12/20/42	$	30	$	31
				4,541
Total U.S. Government Agency Mortgage-Backed Obligations
(Cost $51,204)				52,056
U.S. TREASURY OBLIGATIONS — 28.6%
U.S. Treasury Bonds — 5.3%
4.500%, 02/15/36		2,375		3,246
3.750%, 08/15/41		3,110		3,820
3.125%, 08/15/44		2,380		2,621
				9,687
U.S. Treasury Notes — 23.3%
3.000%, 08/31/16		2,390		2,405
3.000%, 09/30/16		185		187
2.625%, 08/15/20		3,505		3,694
2.500%, 08/15/23		295		312
2.375%, 08/15/24		635		665
2.250%, 11/15/24		470		487
2.250%, 11/15/25		1,520		1,574
2.125%, 05/15/25		3,780		3,877
2.000%, 02/28/21		2,980		3,066
2.000%, 02/15/23		1,760		1,801
1.750%, 10/31/20		7,390		7,519
1.625%, 04/30/19		1,890		1,922
1.625%, 12/31/19		795		808
1.625%, 08/15/22		1,820		1,825
1.500%, 06/30/16		1,060		1,061
1.500%, 08/31/18		150		152
1.500%, 12/31/18		4,430		4,489
1.000%, 03/31/17		1,450		1,453
0.750%, 01/15/17		1,280		1,281
0.625%, 07/15/16		160		160
0.625%, 12/15/16		1,285		1,285
0.500%, 07/31/16		2,200		2,201
				42,224
Total U.S. Treasury Obligations
(Cost $51,291)				51,911
	Number of Shares
MONEY MARKET FUND — 1.8%
PNC Government Money Market Fund,
Class I Shares 0.080%† (D)		3,268,399		3,268
Total Money Market Fund
(Cost $3,268)				3,268
Total Investments Before Short-Term Investments Purchased with
Collateral from Securities Loaned – 101.4%
(Cost $181,373)				183,960

	Number of Shares		Value (000)
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 0.9%
Affiliated Money Market Fund — 0.8%
PNC Government Money Market Fund,
Class I Shares 0.080%† (D)		1,447,966	$	1,448
Money Market Fund — 0.1%
Morgan Stanley Institutional Liquidity Funds
Government Portfolio,
Institutional Class 0.250% (D)		182,641		183
Total Short-Term Investments Purchased With Collateral From
Securities Loaned
(Cost $1,631)‡				1,631
TOTAL INVESTMENTS — 102.3%
(Cost $183,004)*				185,591
Other Assets & Liabilities – (2.3)%				(4,153	)
TOTAL NET ASSETS — 100.0%			$	181,438

* Aggregate cost for Federal income tax purposes is (000) $183,027.

Gross unrealized appreciation (000)	$3,978
Gross unrealized depreciation (000)	(1,414	)
Net unrealized appreciation (000)	$2,564

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $1,585 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(B) Security in default.

(C) Par and Value are less than $500.

(D) The rate quoted is the annualized seven-day effective yield of the fund at period end.

144A Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Total value of Rule 144A securities is $6,506 (000) and represents 3.6% of net assets as of May 31, 2016.

See Notes to Financial Statements.

221

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Asset-Backed Securities		$	–		$	13,612		$	–		$	13,612
Commercial Mortgage-Backed Security			–			51			–			51
Corporate Bonds			–			62,208			–			62,208
Money Market Fund			3,268			–			–			3,268
Municipal Bond			–			854			–			854
Short-Term Investments Purchased With Collateral From Securities Loaned			1,631			–			–			1,631
U.S. Government Agency Mortgage- Backed Obligations			–			52,056			–			52,056
U.S. Treasury Obligations			–			51,911			–			51,911
Total Assets - Investments in Securities		$	4,899		$	180,692		$	–		$	185,591

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	1,631		$	–		$	1,631
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	1,631		$	–		$	1,631

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

222

P N C  U l t r a  S h o r t  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
ASSET-BACKED SECURITIES — 20.2%
Automotive — 12.1%
Fifth Third Auto Trust,
Series 2014-3, Cl A3
0.960%, 03/15/19	$	3,417	$	3,416
Ford Credit Auto Owner Trust,
Series 2014-A, Cl A3
0.790%, 05/15/18		2,218		2,216
Ford Credit Auto Owner Trust,
Series 2015-A, Cl A3
1.280%, 09/15/19		4,060		4,069
Honda Auto Receivables Owner Trust,
Series 2014-3, Cl A3
0.880%, 06/15/18		3,006		3,005
Honda Auto Receivables Owner Trust,
Series 2015-1, Cl A2
0.700%, 06/15/17		551		551
Honda Auto Receivables Owner Trust,
Series 2016-2, Cl A2
1.130%, 09/15/18		2,680		2,680
Hyundai Auto Receivables Trust,
Series 2013-B, Cl A3
0.710%, 09/15/17		18		18
Hyundai Auto Receivables Trust,
Series 2013-B, Cl A4
1.010%, 02/15/19		4,005		4,005
Hyundai Auto Receivables Trust,
Series 2015-A, Cl A3
1.050%, 04/15/19		4,445		4,445
Mercedes Benz Auto Lease Trust,
Series 2015-A, Cl A2A
0.780%, 02/15/17		133		133
Mercedes-Benz Auto Receivables Trust,
Series 2015-1, Cl A2A
0.820%, 06/15/18		3,309		3,307
Nissan Auto Lease Trust,
Series 2014-B, Cl A2A
0.730%, 04/17/17		1,477		1,476
Nissan Auto Receivables Owner Trust,
Series 2015-B, Cl A2A
0.830%, 07/16/18		4,048		4,046
Toyota Auto Receivables Owner Trust,
Series 2015-A, Cl A2
0.710%, 07/17/17		857		857
Toyota Auto Receivables Owner Trust,
Series 2015-C, Cl A2A
0.920%, 02/15/18		1,740		1,739
USAA Auto Owner Trust,
Series 2015-1, Cl A3
1.200%, 06/17/19		5,425		5,432
Volkswagen Auto Loan Enhanced Trust,
Series 2014-1, Cl A3
0.910%, 10/22/18		4,238		4,223
				45,618
Credit Cards — 6.6%
American Express Credit Account Master Trust,
Series 2014-4, Cl A
1.430%, 06/15/20		6,150		6,176

	Par (000)		Value (000)
Capital One Multi-Asset Execution Trust,
Series 2014-A5, Cl A5
1.480%, 07/15/20	$	5,980	$	6,009
Chase Issuance Trust,
Series 2015-A2, Cl A2
1.590%, 02/18/20		5,820		5,859
Citibank Credit Card Issuance Trust,
Series 2013-A6, Cl A6
1.320%, 09/07/18		6,745		6,754
				24,798
Equipment — 1.2%
John Deere Owner Trust,
Series 2015-A, Cl A2A
0.870%, 02/15/18		1,832		1,831
John Deere Owner Trust,
Series 2016-A, Cl A2
1.150%, 10/15/18		2,475		2,475
				4,306
Utilities — 0.3%
CenterPoint Energy Transition Bond LLC,
Series 2012-1, Cl A1
0.901%, 04/15/18		1,113		1,112
Total Asset-Backed Securities
(Cost $75,852)				75,834
COLLATERALIZED MORTGAGE OBLIGATIONS — 3.6%
Banc of America Mortgage Trust,
Series 2003-A, Cl 1A1
2.747%, 02/25/33 (A)		7		7
Fannie Mae, Series 2002-47, Cl PE
5.500%, 08/25/17		25		25
Fannie Mae, Series 2002-55, Cl GC
5.500%, 09/25/17		57		58
Fannie Mae, Series 2003-15, Cl CB
5.000%, 03/25/18		981		1,003
Fannie Mae, Series 2003-24, Cl BC
5.000%, 04/25/18		137		141
Fannie Mae, Series 2003-74, Cl PG
4.500%, 08/25/18		821		843
Fannie Mae, Series 2003-120, Cl BY
4.000%, 12/25/18		916		936
Fannie Mae, Series 2008-18, Cl ND
4.000%, 05/25/20		416		423
Fannie Mae, Series 2011-6, Cl BA
2.750%, 06/25/20		2,123		2,148
Freddie Mac, Series 2677, Cl LE
4.500%, 09/15/18		1,045		1,079
Freddie Mac, Series 2748, Cl LG
4.500%, 02/15/19		774		795
Freddie Mac, Series 2892, Cl DB
4.500%, 11/15/19		1,745		1,800
Freddie Mac, Series 3825, Cl AB
3.000%, 08/15/20		1,829		1,860
Freddie Mac, Series 3826, Cl MC
1.750%, 07/15/18		753		755

See Notes to Financial Statements.

223

	Par		Value
	(000)		(000)
COLLATERALIZED MORTGAGE OBLIGATIONS — continued
Freddie Mac, Series 3977, Cl GA
1.500%, 07/15/19	$	1,707	$	1,712
Total Collateralized Mortgage Obligations
(Cost $13,558)				13,585
CORPORATE BONDS — 32.5%
Automotive — 0.7%
American Honda Finance (MTN)
0.950%, 05/05/17		2,465		2,466
Cable — 1.0%
21st Century Fox America
8.000%, 10/17/16		1,503		1,541
Thomson Reuters
1.300%, 02/23/17		2,065		2,067
				3,608
Energy — 0.6%
Enterprise Products Operating LLC
6.300%, 09/15/17		2,300		2,432
Financials — 17.6%
Abbey National Treasury Services PLC
1.375%, 03/13/17		4,015		4,019
American Express
5.500%, 09/12/16		2,930		2,967
7.000%, 03/19/18		750		820
Bank of America
2.000%, 01/11/18		5,070		5,089
Bank of Nova Scotia
1.375%, 12/18/17		4,200		4,200
BNP Paribas SA (MTN)
1.375%, 03/17/17		3,090		3,095
Capital One Bank USA NA
1.200%, 02/13/17		3,000		2,997
Citigroup
1.800%, 02/05/18		4,940		4,945
Cooperatieve Rabobank UA
3.375%, 01/19/17		3,965		4,024
Deutsche Bank AG
6.000%, 09/01/17		2,765		2,895
Goldman Sachs Group
6.250%, 09/01/17		3,000		3,167
HSBC USA
1.625%, 01/16/18		4,000		3,999
JPMorgan Chase
1.625%, 05/15/18		3,830		3,828
Morgan Stanley (GMTN)
2.125%, 04/25/18		3,100		3,124
Royal Bank of Canada
1.200%, 09/19/17		4,000		3,991
Toronto Dominion Bank (MTN)
1.400%, 04/30/18		3,830		3,830
UBS AG (GMTN)
1.130%, 09/26/16 (A)		1,100		1,101
Wells Fargo (MTN)
2.100%, 05/08/17		4,000		4,035
Westpac Banking
2.250%, 07/30/18		4,000		4,056
				66,182

	Par		Value
	(000)		(000)
Food, Beverage & Tobacco — 1.7%
Anheuser-Busch InBev Finance
1.125%, 01/27/17	$	3,000	$	3,004
PepsiCo
1.125%, 07/17/17		3,470		3,479
				6,483
Healthcare — 2.3%
AbbVie
1.750%, 11/06/17		3,070		3,077
Amgen
2.300%, 06/15/16		2,035		2,036
Teva Pharmaceutical Finance BV
2.400%, 11/10/16		2,000		2,011
UnitedHealth Group
1.450%, 07/17/17		1,380		1,386
				8,510
Materials — 1.0%
Caterpillar Financial Services (GMTN)
1.500%, 02/23/18		2,030		2,039
Rio Tinto Finance USA PLC
1.375%, 06/17/16		1,675		1,676
				3,715
Real Estate Investment Trusts — 0.6%
Realty Income
5.950%, 09/15/16		2,415		2,447
Retail — 1.3%
eBay
1.350%, 07/15/17		940		939
McDonald’s (MTN)
5.300%, 03/15/17		2,800		2,896
Walgreens Boots Alliance
1.750%, 11/17/17		1,229		1,234
				5,069
Technology — 0.6%
Amphenol
1.550%, 09/15/17		2,130		2,125
Telecommunications — 2.6%
AT&T
5.500%, 02/01/18		2,850		3,033
Cisco Systems
1.400%, 02/28/18		3,840		3,860
Verizon Communications
1.350%, 06/09/17		3,000		3,009
				9,902
Utilities — 2.5%
National Rural Utilities Cooperative Finance (MTN)
0.950%, 04/24/17		1,980		1,980
NextEra Energy Capital Holdings
1.586%, 06/01/17		1,740		1,742
Southern
1.550%, 07/01/18		850		851
Southern Power
1.850%, 12/01/17		2,000		2,011

See Notes to Financial Statements.

224

P N C  U l t r a  S h o r t  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
CORPORATE BONDS — continued
Utilities — continued
Xcel Energy
1.200%, 06/01/17	$	2,800	$	2,797
				9,381
Total Corporate Bonds
(Cost $122,106)				122,320
U.S. TREASURY OBLIGATIONS — 42.8%
U.S. Treasury Notes — 42.8%
1.000%, 10/31/16		12,055		12,078
0.875%, 02/28/17		21,490		21,519
0.875%, 05/15/17		16,835		16,857
0.875%, 08/15/17		11,080		11,093
0.750%, 01/15/17		24,260		24,279
0.750%, 03/15/17		22,275		22,283
0.750%, 10/31/17		5,050		5,045
0.625%, 11/15/16		23,485		23,492
0.500%, 03/31/17		24,565		24,523
Total U.S. Treasury Obligations
(Cost $161,173)				161,169

	Number of Shares		Value (000)
MONEY MARKET FUND — 0.8%
PNC Government Money Market Fund,
Class I Shares 0.080%† (B)		2,897,196	$	2,897
Total Money Market Fund
(Cost $2,897)				2,897
TOTAL INVESTMENTS — 99.9%
(Cost $375,586)*				375,805
Other Assets & Liabilities – 0.1%				380
TOTAL NET ASSETS — 100.0%			$	376,185

* Aggregate cost for Federal income tax purposes is (000) $375,594.

Gross unrealized appreciation (000)	$327
Gross unrealized depreciation (000)	(116	)
Net unrealized appreciation (000)	$211

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) Variable Rate Security — the rate shown is the rate in effect on May 31, 2016.

(B) The rate quoted is the annualized seven-day effective yield of the fund at period end.

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Asset-Backed Securities		$	–		$	75,834		$	–		$	75,834
Collateralized Mortgage Obligations			–			13,585			–			13,585
Corporate Bonds			–			122,320			–			122,320
Money Market Fund			2,897			–			–			2,897
U.S. Treasury Obligations			–			161,169			–			161,169
Total Assets - Investments in Securities		$	2,897		$	372,908		$	–		$	375,805

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

225

P N C  I n t e r m e d i a t e  T a x  E x e m p t  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
MUNICIPAL BONDS — 97.3%
Alaska — 4.8%
Alaska Housing Finance Corporation, State
Capital Project (RB) Series C
5.000%, 06/01/29	$	1,165	$	1,417
Alaska International Airports System (RB)
Series A
5.000%, 10/01/30		1,190		1,444
Municipality of Anchorage, Electric Utility (RB)
Series A
4.000%, 12/01/20		1,000		1,110
				3,971
Arizona — 2.5%
Arizona School Facilities Board (RB) (AMBAC)
5.000%, 07/01/16		1,000		1,003
5.000%, 07/01/17		1,000		1,042
				2,045
California — 3.3%
California Public Works Board, Various Capital
Project (RB) Series A
5.000%, 04/01/23		1,000		1,206
California State Department of Water Resources,
Power Supply (RB)
5.000%, 05/01/20		1,405		1,517
				2,723
Connecticut — 2.9%
Connecticut State Health & Educational Facility
Authority, Quinnipiac University (RB) Series L
5.000%, 07/01/30		2,000		2,386
Florida — 13.7%
Broward County, Florida Port Facilities
(RB) Series A (AGM)
5.000%, 09/01/24		1,000		1,158
Citizens Property Insurance (RB) Series A-1
5.000%, 06/01/21		1,400		1,638
5.000%, 06/01/22		1,500		1,770
Florida State Department of
Transportation (RB)
5.000%, 07/01/18		1,850		1,954
University of North Florida Financing
Corporation, Housing Project
(RB) (NATL-RE)
5.000%, 11/01/18		1,720		1,820
Volusia County Educational Facility
Authority (RB)
5.000%, 06/01/26		1,500		1,818
Volusia County Educational Facility
Authority (RB) Series B
5.000%, 10/15/29		1,000		1,179
				11,337
Georgia — 2.3%
Atlanta Department of Aviation (RB) Series A
5.000%, 01/01/24		1,500		1,860
Illinois — 5.7%
Chicago Midway Airport (RB) Series B
5.000%, 01/01/23		2,500		3,018

	Par (000)		Value (000)
Illinois State (GO)
5.250%, 07/01/28	$	1,535	$	1,701
				4,719
Indiana — 9.6%
Ball State University, Housing and
Dining System (RB)
5.000%, 07/01/26		1,250		1,503
Ball State University, Student Fee (RB) Series P
5.000%, 07/01/26		1,000		1,145
Indiana Finance Authority, Beacon Health
Systems Obligated Group (RB) Series A
5.000%, 08/15/25		2,000		2,417
Purdue University Student Fee (RB) Series CC
5.000%, 07/01/25		1,245		1,582
5.000%, 07/01/32		1,000		1,246
				7,893
Kansas — 1.7%
Olathe, Olathe Medical Center (RB) Series A
5.000%, 09/01/26		1,190		1,379
Louisiana — 5.3%
Louisiana Public Facilities Authority, Ochsner
Clinic Foundation Project, Prerefunded
05/15/2015 @ 100 (RB)
5.250%, 05/15/15		2,655		3,171
New Orleans Aviation Board (RB) Series A
5.000%, 01/01/25		1,000		1,225
				4,396
Massachusetts — 9.1%
Commonwealth of Massachusetts (GO)
Series B (AGM)
5.250%, 08/01/28		1,000		1,331
Massachusetts Development Finance Agency,
Tufts Medical Center (RB) Series I
6.250%, 01/01/27		1,000		1,173
Massachusetts Housing Finance Agency (RB)
Series 171
4.000%, 12/01/44		1,685		1,822
Massachusetts Water Resources Authority (RB)
Series B (AGM)
5.250%, 08/01/23		1,125		1,415
Massachusetts Water Resources Authority (RB)
Series J (AGM)
5.500%, 08/01/21		1,455		1,765
				7,506
Michigan — 3.1%
Michigan Finance Authority, Unemployment
Obligation Assessment (RB) Series B
5.000%, 07/01/20		2,000		2,239
Michigan State Hospital Finance Authority,
Sparrow Health Obligated Group (RB)
5.000%, 11/15/18		290		307
				2,546

See Notes to Financial Statements.

226

P N C   I n t e r m e d i a t e  T a x  E x e m p t  B o n d  F u n d

S CH E D U LE  O F  I N V E ST M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
MUNICIPAL BONDS — continued
Missouri — 4.0%
Cape Girardeau County Industrial Development
Authority, St. Francis Medical Center (RB)
Series A
5.000%, 06/01/26	$	1,705	$	1,979
5.000%, 06/01/27		1,145		1,323
				3,302
New Jersey — 1.3%
South Jersey Transportation Authority (RB)
Series A
5.000%, 11/01/29		1,000		1,112
New York — 4.1%
New York Local Government Assistance
Corporation (RB) Series 2008B-C/D
5.000%, 04/01/20		3,000		3,346
North Carolina — 2.9%
North Carolina Eastern Municipal Power Agency,
Prerefunded 07/01/22 @ 100 (RB) Series A
5.000%, 07/01/22		2,000		2,425
Ohio — 3.0%
Ohio State Higher Education (GO) Series C
5.000%, 08/01/20		1,000		1,161
Ohio State University (RB) Series D
5.000%, 12/01/29		1,000		1,321
				2,482
Oklahoma — 1.4%
Oklahoma Housing Finance Agency (RB)
Series A (GNMA)
5.000%, 09/01/27		1,000		1,157
Pennsylvania — 5.9%
Allegheny County Higher Education Building
Authority, Chatham University (RB) Series A
5.000%, 09/01/24		1,000		1,152
Monroeville Finance Authority (RB)
5.000%, 02/15/26		775		963
5.000%, 02/15/27		1,275		1,592
Philadelphia Authority for Industrial
Development, Temple University
(RB) Second Series of 2016
5.000%, 04/01/31		1,000		1,197
				4,904
Texas — 8.6%
Brownsville Utilities System (RB) Series A
5.000%, 09/01/25		2,220		2,660
Dallas-Fort Worth International Airport (RB)
Series G
5.000%, 11/01/26		1,125		1,299
Harris County Cultural Education Facilities
Finance Corporation, Methodist Hospital
System (RB) Sub-Series C-1 (VRDN)
0.300%, 12/01/24		1,000		1,000
Lower Neches Valley Authority Industrial
Development Corporation, Exxon Mobil
Project (RB) (VRDN)
0.280%, 05/01/46		1,000		1,000

	Par (000)		Value (000)
Texas Tech University (RB) Twelfth Series
5.000%, 02/15/19	$	1,000	$	1,107
				7,066
Guam — 2.1%
Guam (RB) Series A
5.000%, 01/01/25		1,500		1,722
Total Municipal Bonds
(Cost $75,556)				80,277
TOTAL INVESTMENTS — 97.3%
(Cost $75,556)*				80,277
Other Assets & Liabilities – 2.7%				2,249
TOTAL NET ASSETS — 100.0%			$	82,526

* Aggregate cost for Federal income tax purposes is (000) $75,557.

Gross unrealized appreciation (000)	$4,743
Gross unrealized depreciation (000)	(23	)
Net unrealized appreciation (000)	$4,720

See Notes to Financial Statements.

227

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Municipal Bonds		$	–		$	80,277		$	–		$	80,277
Total Assets - Investments in Securities		$	–		$	80,277		$	–		$	80,277

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

228

P N C  M a r y l a n d  T a x  E x e m p t  B o n d  F u n d

S C H E D U L E  O F  I N V E ST M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
MUNICIPAL BONDS — 98.9%
Maryland — 92.8%
Annapolis, Public Improvement (GO)
5.000%, 08/01/23	$	775	$	914
Annapolis, Public Improvement,
Prerefunded 08/01/21@100 (GO)
5.000%, 08/01/21		225		266
Anne Arundel County Consolidated General
Improvement (GO)
5.000%, 04/01/31		1,000		1,233
Baltimore County Consolidated Public
Improvement (GO) Series B
5.000%, 08/01/29		1,500		1,854
Baltimore, Wastewater Projects
(RB) Series A (NATL-RE)
5.000%, 07/01/22		1,000		1,113
Baltimore, Water Project (RB) Series B
5.000%, 07/01/28		1,010		1,220
Cecil County Consolidated Public
Improvement (GO)
4.000%, 02/01/30		1,000		1,146
Charles County Consolidated Public
Improvement (GO)
5.000%, 07/15/19		1,335		1,501
Frederick County, Urbana Community
Development Authority (STRB) Series A
5.000%, 07/01/24		2,020		2,302
Howard County (GO) Series B
5.000%, 08/15/22		1,500		1,786
Maryland Community Development
Administration (RB) Series B (NATL-RE)
5.150%, 06/01/22		20		20
5.125%, 06/01/17		10		10
Maryland Department of Transportation,
Prerefunded 09/01/18 @100 (RB) Second Issue
5.000%, 09/01/18		1,000		1,092
Maryland Economic Development Corporation,
Potomac Electric Project (RB)
6.200%, 09/01/22		1,500		1,698
Maryland Health & Higher Educational Facilities
Authority, Goucher College (RB) Series A
5.000%, 07/01/25		1,160		1,363
Maryland Health & Higher Educational Facilities
Authority, Johns Hopkins Health System (RB)
5.000%, 05/15/26		1,500		1,732
5.000%, 07/01/27		2,200		2,579
Maryland Health & Higher Educational Facilities
Authority, Lifebridge Health (RB) (AGM)
5.000%, 07/01/19		850		890
Maryland Health & Higher Educational Facilities
Authority, MedStar Health (RB) Series A
5.000%, 08/15/26		3,000		3,563
Maryland Health & Higher Educational Facilities
Authority, Peninsula Medical Center (RB)
5.000%, 07/01/30		1,000		1,183
Maryland Stadium Authority (RB)
5.000%, 06/15/21		1,280		1,502
Maryland Stadium Authority, Baltimore City
Public Schools (RB)
5.000%, 05/01/32		1,000		1,232

	Par		Value
	(000)		(000)
Maryland Transportation Authority,
Transportation Facilities Project (RB)
5.000%, 07/01/19	$	1,500	$	1,625
Maryland Water Quality Financing
Administration (RB) Series A
5.000%, 03/01/24		1,175		1,261
Montgomery County (GO) Series A
5.000%, 11/01/29		1,000		1,246
Montgomery County Revenue Authority,
Department of Liquor Control (RB) Series A
5.000%, 04/01/21		1,075		1,264
Prince George’s County Consolidated Public
Improvement (GO) Series B
5.000%, 07/15/20		900		943
5.000%, 07/15/23		1,550		1,624
Prince George’s County Industrial Development
Authority, Upper Marlboro Justice Center
Project (RB) Series A (NATL-RE)
5.000%, 06/30/19		710		712
University System of Maryland (RB) Series A
5.000%, 04/01/28		1,000		1,265
Washington Suburban Sanitary Commission
Consolidated Public Improvement (GO)
5.000%, 06/01/27		1,000		1,293
Worcester County Consolidated Public
Improvement (GO)
5.000%, 03/01/22		1,500		1,806
				43,238
Guam — 6.1%
Guam (RB) Series A
5.000%, 01/01/27		2,500		2,833
Total Municipal Bonds
(Cost $43,992)				46,071
TOTAL INVESTMENTS — 98.9%
(Cost $43,992)*				46,071
Other Assets & Liabilities – 1.1%				530
TOTAL NET ASSETS — 100.0%			$	46,601

* Aggregate cost for Federal income tax purposes is (000) $43,990.

Gross unrealized appreciation (000)	$2,098
Gross unrealized depreciation (000)	(17	)
Net unrealized appreciation (000)	$2,081

See Notes to Financial Statements.

229

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Municipal Bonds		$	–		$	46,071		$	–		$	46,071
Total Assets - Investments in Securities		$	–		$	46,071		$	–		$	46,071

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

230

P N C  O h i o  I n t e r m e d i a t e  T a x  E x e m p t  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par		Value
	(000)		(000)
MUNICIPAL BONDS — 96.6%
Ohio — 93.2%
Allen County Hospital Facilities, Catholic
Healthcare Partners (RB) Series B
5.000%, 09/01/21	$	1,680	$	1,934
American Municipal Power, AMP Fremont
Energy Center Project (RB) Series B
5.000%, 02/15/25		1,500		1,764
American Municipal Power, Hydroelectric
Projects (RB) Series C
5.000%, 02/15/22		2,000		2,247
Columbus, Prerefunded 07/01/21 @ 100
(GO) Series A
5.000%, 07/01/21		1,500		1,786
Cuyahoga County, Prerefunded 12/01/19 @ 100
(GO) Series A
5.000%, 12/01/19		1,000		1,137
Dublin City School District (GO)
5.000%, 12/01/21		1,145		1,370
Franklin County (GO)
5.000%, 12/01/16		805		805
Franklin County Hospital Facilities, OhioHealth
Corporation (RB)
5.000%, 05/15/28		1,150		1,387
Hamilton County Hospital Facilities,
UC Health (RB)
5.000%, 02/01/28		830		959
5.000%, 02/01/29		850		974
Kent State University (RB)
5.000%, 05/01/30		1,000		1,239
Lucas County, ProMedica Healthcare Obligated
Group (RB) Series D
5.000%, 11/15/21		2,005		2,377
Northeast Ohio Regional Sewer District (RB)
5.000%, 11/15/29		500		619
5.000%, 11/15/30		450		555
Ohio Housing Finance Agency (RB)
Series 2 (GNMA, FNMA, FHLMC)
5.000%, 11/01/19		2,095		2,342
Ohio State Higher Educational Facility
Commission, University of Dayton (RB)
Series A
5.000%, 12/01/24		525		640
5.000%, 12/01/26		725		877
5.000%, 12/01/27		160		192
Ohio State Highway Capital Improvements (GO)
Series Q
5.000%, 05/01/23		1,000		1,206
5.000%, 05/01/24		2,025		2,436
Ohio State Hospital Facility, Cleveland Clinic
Health System (RB) Series B
5.000%, 01/01/23		2,000		2,212
Ohio State Public Facilities Commission, Coal
Development (GO) Series M
5.000%, 02/01/24		1,310		1,639
Ohio State University (RB) Series A
5.000%, 12/01/29		1,100		1,349
Ohio State University (RB) Series D (ETM)
5.000%, 12/01/25		85		110

	Par		Value
	(000)		(000)
Ohio State Water Development Authority, Fresh
Water Project (RB) Series B
5.250%, 12/01/23	$	1,000	$	1,267
5.000%, 12/01/20		2,015		2,325
Ohio State Water Development Authority, Water
Pollution Control Project (RB)
5.000%, 06/01/23		1,265		1,566
Ohio State Water Development Authority, Water
Pollution Control Project (RB) Series B
5.000%, 06/01/30		1,000		1,255
Toledo Water System (RB)
5.000%, 11/15/31		1,000		1,187
Westlake City School District (GO)
5.000%, 12/01/27		1,395		1,726
				41,482
Guam — 3.4%
Guam (RB) Series A
5.000%, 01/01/26		1,350		1,543
Total Municipal Bonds
(Cost $40,486)				43,025
TOTAL INVESTMENTS — 96.6%
(Cost $40,486)*				43,025
Other Assets & Liabilities – 3.4%				1,492
TOTAL NET ASSETS — 100.0%			$	44,517

* Aggregate cost for Federal income tax purposes is (000) $40,487.

Gross unrealized appreciation (000)	$2,552
Gross unrealized depreciation (000)	(14	)
Net unrealized appreciation (000)	$2,538

See Notes to Financial Statements.

231

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Municipal Bonds		$	–		$	43,025		$	–		$	43,025
Total Assets - Investments in Securities		$	–		$	43,025		$	–		$	43,025

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

232

P N C  T a x  E x e m p t  L i m i t e d  M a t u r i t y  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
MUNICIPAL BONDS — 99.5%
Alaska — 2.3%
Alaska Housing Finance Corporation, State
Capital Project II (RB) Series A
5.000%, 12/01/22	$	1,010	$	1,206
Municipality of Anchorage, Electric Utility (RB)
Series A
5.000%, 12/01/22		1,550		1,860
				3,066
Arizona — 3.3%
Arizona School Facilities Board (RB) (AMBAC)
5.000%, 07/01/18		1,735		1,879
Arizona Transportation Board, Maricopa
County Regional Area (RB)
5.000%, 07/01/19		2,250		2,524
				4,403
California — 4.9%
California Public Works Board, Various Capital
Projects (RB) Series A
5.000%, 04/01/18		1,000		1,077
5.000%, 04/01/20		1,000		1,145
California State (GO)
5.000%, 11/01/18		2,000		2,198
California State, Economic Recovery, Prerefunded
07/01/19 @ 100 (GO) Series A
5.000%, 07/01/19		1,825		2,054
				6,474
District of Columbia — 1.3%
District of Columbia, The Catholic
University of America (RB)
5.000%, 10/01/16		1,760		1,785
Florida — 10.1%
Broward County, Florida Port Facilities
(RB) Series A (AGM)
5.000%, 09/01/24		1,730		2,004
Central Florida Expressway Authority
(BAN) (RB)
1.625%, 01/01/19		1,925		1,941
Citizens Property Insurance (RB) Series A-1
5.000%, 06/01/19		1,000		1,114
5.000%, 06/01/21		1,500		1,755
5.000%, 06/01/22		1,500		1,770
Palm Beach County Health Facilities
Authority (RB)
4.000%, 12/01/19		1,000		1,076
Tampa Bay Water Regional Water Supply
Authority Utility System (RB) Series B (ETM)
5.000%, 10/01/18		945		1,036
5.000%, 10/01/18		930		1,018
Volusia County Educational Facility
Authority (RB)
5.000%, 06/01/24		1,345		1,632
				13,346
Illinois — 11.2%
Chicago Midway Airport (RB) Series B
5.000%, 01/01/22		1,000		1,187

	Par (000)		Value (000)
Chicago O’Hare International Airport (RB)
Series B
5.000%, 01/01/23	$	1,000	$	1,203
Illinois (GO)
5.000%, 07/01/22		750		836
Illinois (GO) Series A
4.000%, 01/01/17		860		874
4.000%, 01/01/21		2,000		2,103
Illinois (RB)
5.000%, 06/15/17		3,000		3,130
Illinois Finance Authority, DePaul University (RB)
5.000%, 10/01/20		1,500		1,723
Illinois Finance Authority, The Art Institute of
Chicago (RB) Series A
5.250%, 03/01/19		1,000		1,098
Metropolitan Water Reclamation District of
Greater Chicago (GO) Series B
5.000%, 12/01/18		1,430		1,567
Will County Forest Preservation District (GO)
4.000%, 12/15/18		1,000		1,074
				14,795
Indiana — 5.7%
Ball State University, Housing and Dining
System (RB)
5.000%, 07/01/21		725		854
5.000%, 07/01/22		500		599
Indiana Finance Authority, Beacon Health
Systems Obligated Group (RB) Series SE
5.000%, 08/15/20		1,000		1,151
5.000%, 08/15/21		1,000		1,179
Indiana Municipal Power Agency, Power Supply
System (RB) Series C
5.000%, 01/01/24		1,000		1,225
Purdue University, Student Fee (RB) Series CC
5.000%, 07/01/24		2,000		2,524
				7,532
Iowa — 1.0%
Ames, Mary Greeley Medical Center (RB) (DD)
5.000%, 06/15/23		1,040		1,263
Kansas — 1.8%
Kansas State Department of Transportation (RB)
Series B
5.000%, 09/01/19		1,000		1,130
Wyandatte County, Kansas City Unified
Government Utility System (RB) Series A
5.000%, 09/01/24		1,000		1,238
				2,368
Kentucky — 3.3%
Kentucky Bond Development Corporation,
St. Elizabeth Medical Center (RB)
5.000%, 05/01/24		2,640		3,260
Kentucky Public Transportation Infrastructure
Authority, Downtown Crossing Project (BAN)
(RB) Series A
5.000%, 07/01/17		1,000		1,040
				4,300

See Notes to Financial Statements.

233

	Par (000)		Value (000)
MUNICIPAL BONDS — continued
Louisiana — 2.6%
Louisiana Public Facilities Authority, Ochsner
Clinic (RB)
5.000%, 05/15/22	$	1,705	$	1,765
Louisiana Public Facilities Authority, Ochsner
Clinic, Prerefunded 05/15/17 @ 100 (RB)
5.000%, 05/15/17		640		665
New Orleans Aviation Board (RB) Series A
5.000%, 01/01/24		790		958
				3,388
Maryland — 2.2%
Maryland Economic Development Corporation,
Potomac Electric Project (RB)
6.200%, 09/01/22		1,500		1,698
Maryland State (GO) Series A
5.000%, 03/01/22		1,000		1,176
				2,874
Massachusetts — 1.9%
Massachusetts Development Finance Agency,
Partners Health Care (RB) Series K-6
5.000%, 07/01/17		1,500		1,570
Massachusetts Housing Finance Agency (RB)
Series 172
4.000%, 06/01/45		935		1,010
				2,580
Michigan — 3.6%
Michigan Finance Authority, Unemployment
Obligation Assessment (RB)
5.000%, 07/01/20		1,000		1,120
Michigan Municipal Bond Authority, Clean Water
Pooled Project (RB)
5.000%, 10/01/17		1,025		1,084
Michigan State Hospital Finance Authority,
Ascension Health Senior Credit Group (RB)
Series F-3 (VRDN)
1.400%, 11/15/47		1,500		1,513
Michigan State, Environmental
Program (GO) Series A
5.000%, 05/01/17		1,000		1,040
				4,757
Mississippi — 0.8%
Mississippi Business Finance Corporation, Gulf
Opportunity Zone Industrial Development,
Chevron USA, Inc. Project (RB) Series A
(VRDN)
0.270%, 11/01/35		1,000		1,000
Missouri — 4.4%
Cape Girardeau County Industrial Development
Authority, St. Francis Medical Center (RB)
Series A
5.000%, 06/01/20		1,000		1,129
5.000%, 06/01/22		1,570		1,843

	Par (000)		Value (000)
Missouri Highway & Transportation
Commission (RB) Series A
5.000%, 05/01/22	$	2,360	$	2,866
				5,838
Nevada — 1.8%
Clark County, Motor Vehicle
Fuel Tax (RB) (AMBAC)
5.000%, 07/01/17		1,805		1,888
Nevada, University System (GO)
Series G (NATL-RE)
5.000%, 08/01/16		500		504
				2,392
New Jersey — 1.2%
New Jersey Economic
Development Authority (RB)
5.000%, 06/15/18		1,500		1,589
New York — 4.5%
Long Island Power Authority
(RB) Series A (ETM)
5.000%, 04/01/19		1,385		1,543
New York State Thruway Authority (RB) Series A
5.000%, 05/01/19		3,000		3,339
Tobacco Settlement Financing Corporation
(RB) Series B
5.000%, 06/01/22		1,000		1,042
				5,924
North Carolina — 2.7%
Forsyth County (GO) Series B
5.000%, 04/01/19		1,000		1,115
North Carolina Medical Care Commission, North
Carolina Baptist Hospital (RB)
5.000%, 06/01/20		2,115		2,417
				3,532
Ohio — 1.6%
Franklin County, OhioHealth Corporation (RB)
Series B (VRDN)
5.000%, 11/15/33		1,500		1,571
Hamilton County Hospital Facilities
UC Health (RB)
5.000%, 02/01/23		500		583
				2,154
Pennsylvania — 6.1%
Allegheny County Higher Education Building
Authority, Chatham University (RB) Series A
5.000%, 09/01/17		1,010		1,058
5.000%, 09/01/19		610		670
Commonwealth of Pennsylvania (GO)
Third Series A
5.000%, 07/15/18		1,695		1,837
Dauphin County (GO)
5.000%, 11/15/18		1,015		1,113
Pennsylvania Economic Development Financing
Authority (RB) Series B
5.000%, 07/01/22		1,000		1,005

See Notes to Financial Statements.

234

P N C  T a x  E x e m p t  L i m i t e d  M a t u r i t y  B o n d  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Par (000)		Value (000)
MUNICIPAL BONDS — continued
Pennsylvania — continued
Pennsylvania Higher Educational Facilities
Authority, University of Sciences in
Philadelphia (RB) Series A
5.000%, 11/01/23	$	1,500	$	1,808
Pennsylvania Housing Finance Agency (RB)
Series 105B
4.250%, 04/01/24		500		525
				8,016
Tennessee — 0.7%
Tennessee Housing Development Agency,
Residential Finance Program (RB) Series 2C
4.000%, 01/01/45		850		923
Texas — 8.0%
Dallas Independent School
District (GO) (PSF-GTD)
5.000%, 02/15/18		2,500		2,679
Houston Texas Hotel Occupancy (RB) Series B
5.000%, 09/01/21		140		142
Katy Independent School District, School
Building (GO) Series A (PSF-GTD)
5.000%, 02/15/21		2,000		2,343
Lewisville Independent School
District (GO) Series A (PSF-GTD)
5.000%, 08/15/21		2,000		2,372
University of Texas System (RB) Series A
5.000%, 08/15/21		1,400		1,667
University of Texas System (RB) Series B
5.000%, 08/15/21		1,100		1,310
				10,513
Utah — 4.6%
Murray, IHC Heath Services (RB) Series D
(SBPA - Wells Fargo Bank) (VRDN)
0.260%, 05/15/37##		1,400		1,400
Nebo School District, School Building (GO)
5.000%, 07/01/19		1,000		1,122
Utah State (GO) Series A
4.000%, 07/01/17		3,485		3,612
				6,134
Virginia — 0.8%
York County Economic Development Authority,
Virginia Electric and Power Company Project
(RB) Series A (VRDN)
1.875%, 05/01/33		1,050		1,068
Washington — 5.2%
Energy Northwest, Project 3 (RB) Series A
5.000%, 07/01/18		1,985		2,154
Port of Seattle (RB) Series B
5.000%, 03/01/21		2,200		2,577
Washington (GO)
Series 2011-A
5.000%, 01/01/18		2,000		2,134
				6,865

	Par (000)		Value (000)
Guam — 1.9%
Guam (RB) Series C
5.000%, 11/15/18	$	2,265	$	2,466
Total Municipal Bonds
(Cost $128,951)				131,345
TOTAL INVESTMENTS — 99.5%
(Cost $128,951)*				131,345
Other Assets & Liabilities – 0.5%				671
TOTAL NET ASSETS — 100.0%			$	132,016

* Aggregate cost for Federal income tax purposes is (000) $128,951.

Gross unrealized appreciation (000)	$2,521
Gross unrealized depreciation (000)	(127	)
Net unrealized appreciation (000)	$2,394

## All or a portion of the security has been segregated on the Fund’s books and records for delayed-delivery transactions.

See Notes to Financial Statements.

235

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Municipal Bonds		$	–		$	131,345		$	–		$	131,345
Total Assets - Investments in Securities		$	–		$	131,345		$	–		$	131,345

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

236

P N C  F i x e d  I n c o m e  F u nd s

S T AT E M E N T S  O F  A S S E TS  A N D  L I A B I L I T I E S  ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Bond Fund		Government Mortgage Fund		High Yield Bond Fund		Intermediate Bond Fund
ASSETS
Investments in non-affiliates at value	$	84,929		$51,782		$13,245		$289,474
Investments in affiliates at value		1,449		769		13		4,411
Short-term investment in non-affiliates held as
collateral for loaned securities at value		27		–		25		413
Short-term investment in affiliates purchased with
collateral from securities loaned at value		216		–		194		3,272
Total Investments at value(1)(2)		86,621		52,551		13,477		297,570
Receivable for investments sold		396		1		–		2,917
Receivable for shares of beneficial interest issued		2		36		10		2
Interest receivable		415		151		250		1,442
Receivable from Adviser		–		–		2		–
Prepaid expenses		12		15		13		19
Other assets		29		16		2		54
Total Assets		87,475		52,770		13,754		302,004
LIABILITIES
Payable for collateral received for loaned securities		243		–		219		3,685
Payable for shares of beneficial interest redeemed		338		2		–		–
Payable for investment securities purchased		396		–		–		2,771
Dividends payable
Class I		55		57		20		192
Class A		2		12		2		1
Investment advisory fees payable		20		9		–		99
12b-1 fees payable
Class A		1		2		–		1
Shareholder servicing fees payable
Class A		1		2		–		1
Administration fees payable		6		4		3		16
Custodian fees payable		4		5		1		5
Transfer agent fees payable		14		15		7		15
Trustees’ deferred compensation payable		29		16		2		54
Trustees’ fees payable		3		1		–		7
Other liabilities		38		37		21		56
Total Liabilities		1,150		162		275		6,903
TOTAL NET ASSETS	$	86,325		$52,608		$13,479		$295,101
Investments in non-affiliates at cost	$	82,707		$50,435		$13,328		$286,362
Investments in affiliates at cost		1,449		769		13		4,411
Short-term investment in non-affiliates held as collateral
for loaned securities at cost		27		–		25		413
Short-term investment in affiliates purchased with collateral from securities loaned at cost		216		–		194		3,272
(1)Total Investments at cost	$	84,399		$51,204		$13,560		$294,458
(2)Includes securities on loan with a value of	$	237		$         –		$     212		$    3,595

See Notes to Financial Statements.

237

	Bond     Fund			Government Mortgage Fund			High Yield Bond Fund			Intermediate Bond Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par
Value)	$	84,750		$	51,785		$	15,826		$	293,768
Undistributed (Distributions in Excess of) Net
Investment Income		(29	)		(16	)		–			(66	)
Accumulated Net Realized Gain (Loss) on Investments		(618	)		(508	)		(2,264	)		(1,713	)
Net Unrealized Appreciation/Depreciation on Investments		2,222			1,347			(83	)		3,112
Total Net Assets	$	86,325		$	52,608		$	13,479		$	295,101
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I	$	83,084,331		$	42,624,672		$	11,104,002		$	290,792,709
Class I shares outstanding		7,956,412			4,623,894			1,507,749			26,475,390
Net Asset Value, Offering and Redemption Price Per Share	$	10.44		$	9.22		$	7.36		$	10.98
Net assets applicable to Class A	$	2,985,192		$	9,238,804		$	2,374,725		$	3,885,213
Class A shares outstanding		285,101			1,002,718			322,069			353,540
Net Asset Value and Redemption Price Per Share	$	10.47		$	9.21		$	7.37		$	10.99
Maximum Offering Price Per Share(3)	$	10.96		$	9.64		$	7.72		$	11.51
Maximum Sales Charge Per Share		4.50	%		4.50	%		4.50	%		4.50	%
Net assets applicable to Class C	$	255,830		$	744,296			N/A		$	422,629
Class C shares outstanding		24,508			80,851			N/A			38,322
Net Asset Value and Offering Price Per Share(4)	$	10.44		$	9.21			N/A		$	11.03

⁽³⁾  Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽⁴⁾  Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

238

P N C  F i x e d  I n c o m e  F u n d s

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S    ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Limited Maturity Bond Fund		Total Return Advantage Fund		Ultra Short Bond Fund
ASSETS
Investments in non-affiliates at value	$	290,244	$	180,692	$	372,908
Investments in affiliates at value		2,872		3,268		2,897
Short-term investment in non-affiliates held as collateral for loaned securities at value		–		183		–
Short-term investment in affiliates purchased with collateral from securities loaned at value		–		1,448		–
Total Investments at value(1)(2)		293,116		185,591		375,805
Receivable for investments sold		570		1,003		–
Receivable for shares of beneficial interest issued		94		105		178
Interest receivable		867		1,184		1,067
Prepaid expenses		18		18		16
Other assets		45		38		55
Total Assets		294,710		187,939		377,121
LIABILITIES
Payable for collateral received for loaned securities		–		1,631		–
Payable for shares of beneficial interest redeemed		428		3,412		230
Payable for investment securities purchased		528		1,029		370
Dividends payable
Class I		70		238		111
Class A		–		4		3
Class C		–		1		–
Investment advisory fees payable		86		44		63
12b-1 fees payable
Class A		1		2		–
Class C		–		1		–
Shareholder servicing fees payable
Class A		2		2		–
Administration fees payable		16		10		20
Custodian fees payable		5		5		6
Transfer agent fees payable		17		22		11
Trustees’ deferred compensation payable		45		38		55
Trustees’ fees payable		7		4		9
Other liabilities		55		58		58
Total Liabilities		1,260		6,501		936
TOTAL NET ASSETS	$	293,450	$	181,438	$	376,185
Investments in non-affiliates at cost	$	289,706	$	178,105	$	372,689
Investments in affiliates at cost		2,872		3,268		2,897
Short-term investment in non-affiliates held as collateral for loaned securities at cost		–		183		–
Short-term investment in affiliates purchased with collateral from securities loaned at cost		–		1,448		–
(1)Total Investments at cost	$	292,578	$	183,004	$	375,586
(2)Includes securities on loan with a value of	$	–	$	1,585	$	–

See Notes to Financial Statements.

239

	Limited Maturity Bond Fund			Total Return Advantage Fund			Ultra Short Bond Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)	$	292,956		$	184,153		$	381,708
Undistributed (Distributions in Excess of) Net Investment Income		(71	)		22			(36	)
Accumulated Net Realized Gain (Loss) on Investments		27			(5,324	)		(5,706	)
Net Unrealized Appreciation/Depreciation on Investments		538			2,587			219
Total Net Assets	$	293,450		$	181,438		$	376,185
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I	$	286,767,049		$	168,675,580		$	374,898,685
Class I shares outstanding		28,185,714			15,650,946			37,716,509
Net Asset Value, Offering and Redemption Price Per Share	$	10.17		$	10.78		$	9.94
Net assets applicable to Class A	$	6,157,405		$	11,770,425		$	1,286,324
Class A shares outstanding		603,225			1,091,541			129,262
Net Asset Value and Redemption Price Per Share	$	10.21		$	10.78		$	9.95
Maximum Offering Price Per Share(3)	$	10.42		$	11.29		$	10.05
Maximum Sales Charge Per Share		2.00	%		4.50	%		1.00	%
Net assets applicable to Class C	$	525,191		$	992,138			N/A
Class C shares outstanding		51,468			91,831			N/A
Net Asset Value and Offering Price Per Share(4)	$	10.20		$	10.80			N/A

⁽³⁾ Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽⁴⁾ Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

240

P N C  T a x  E x e m p t  B o n d  F u n d s

S T A T E M E N TS  O F  A S S E T S  A N D  L I A B I L I T I E S  ( 0 0 0 )

M a y  3 1 ,  2 0 1 6

	Intermediate Tax Exempt Bond Fund		Maryland Tax Exempt Bond Fund		Ohio Intermediate Tax Exempt Bond Fund		Tax Exempt Limited Maturity Bond Fund
ASSETS
Investments in non-affiliates at value		$80,277		$46,071		$43,025		$131,345
Total Investments at value(1)		80,277		46,071		43,025		131,345
Cash		116		206		2,487		488
Receivable for investments sold		1,300		10		–		–
Interest receivable		1,059		628		532		1,679
Prepaid expenses		13		3		5		14
Other assets		16		8		12		18
Total Assets		82,781		46,926		46,061		133,544
LIABILITIES
Payable for shares of beneficial interest redeemed		18		184		28		–
Payable for investment securities purchased		–		–		1,382		1,273
Dividends payable
Class I		153		87		68		147
Class A		2		–		1		–
Investment advisory fees payable		19		9		15		40
12b-1 fees payable
Class A		1		–		1		–
Shareholder servicing fees payable
Class A		1		–		1		–
Administration fees payable		5		4		4		8
Custodian fees payable		2		1		1		2
Transfer agent fees payable		12		11		11		8
Trustees’ deferred compensation payable		16		8		12		18
Trustees’ fees payable		2		1		1		3
Other liabilities		24		20		19		29
Total Liabilities		255		325		1,544		1,528
TOTAL NET ASSETS		$82,526		$46,601		$44,517		$132,016
Investments in non-affiliates at cost		$75,556		$43,992		$40,486		$128,951
(1) Total Investments at cost		$75,556		$43,992		$40,486		$128,951

See Notes to Financial Statements.

241

	Intermediate Tax Exempt Bond Fund			Maryland Tax Exempt Bond Fund			Ohio Intermediate Tax Exempt Bond Fund			Tax Exempt Limited Maturity Bond Fund
NET ASSETS:
Paid-in Capital (Unlimited Authorization — No Par Value)	$	77,376		$	44,092		$	41,312		$	129,729
Undistributed (Distributions in Excess of) Net Investment Income		146			(3	)		(68	)		(20	)
Accumulated Net Realized Gain (Loss) on Investments		283			433			734			(87	)
Net Unrealized Appreciation/Depreciation on Investments		4,721			2,079			2,539			2,394
Total Net Assets	$	82,526		$	46,601		$	44,517		$	132,016
NET ASSET VALUE (In unrounded dollars and shares):
Net assets applicable to Class I	$	79,299,402		$	46,366,315		$	39,861,467		$	131,767,078
Class I shares outstanding		8,097,919			4,133,908			3,629,530			12,597,023
Net Asset Value, Offering and Redemption Price Per Share	$	9.79		$	11.22		$	10.98		$	10.46
Net assets applicable to Class A	$	2,912,511		$	212,201		$	4,188,548		$	248,624
Class A shares outstanding		298,601			18,934			382,527			23,750
Net Asset Value and Redemption Price Per Share	$	9.75		$	11.21		$	10.95		$	10.47
Maximum Offering Price Per Share(2)	$	10.05		$	11.56		$	11.29		$	10.79
Maximum Sales Charge Per Share		3.00	%		3.00	%		3.00	%		3.00	%
Net assets applicable to Class C	$	313,589		$	22,558		$	467,374			N/A
Class C shares outstanding		32,474			2,012			42,790			N/A
Net Asset Value and Offering Price Per Share(3)	$	9.66		$	11.21		$	10.92			N/A

⁽²⁾ Net asset value divided by (100% less maximum sales charge), adjusted to nearest cent.

⁽³⁾ Class C Shares are sold with a contingent deferred sales charge.

See Notes to Financial Statements.

242

P N C  F i x e d  I n c o m e  F u n d s

S T A T E M E N T S  O F  O P E R A T I O N S  ( 0 0 0 )

F o r  t h e  Y e a r  E n d e d  M a y  3 1 ,  2 0 1 6

	Bond Fund			Government Mortgage Fund			High Yield Bond Fund			Intermediate Bond Fund
Investment Income:
Interest from unaffiliated investments	$	2,616		$	1,402		$	973		$	6,296
Dividends from unaffiliated investments		–			–			3			–
Dividends from affiliated investments(1)		2			1			1			4
Security lending income(2)		2			–			15			12
Total Investment Income		2,620			1,403			992			6,312
Expenses:
Investment advisory fees		433			217			77			1,263
Administration fees		58			31			13			162
12b-1 fees:
Class A		1			3			–			1
Class C		2			7			–			3
Shareholder servicing fees:
Class A		6			22			2			10
Class C		1			2			–			1
Transfer agent fees		43			47			23			43
Custodian fees		8			9			2			10
Professional fees		39			31			29			66
Pricing service fees		29			31			6			25
Printing and shareholder reports		9			12			5			18
Registration and filing fees		41			40			28			45
Trustees’ fees		11			8			6			23
Miscellaneous		7			7			1			17
Total Expenses		688			467			192			1,687
Less:
Waiver of investment advisory fees(1)		(84	)		(60	)		(74	)		(4	)
Net Expenses		604			407			118			1,683
Net Investment Income (Loss)		2,016			996			874			4,629
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on investments sold		97			64			(2,232	)		(1,373	)
Net change in unrealized appreciation/depreciation on investments		(332	)		(258	)		583			(10	)
Net Gain (Loss) on Investments		(235	)		(194	)		(1,649	)		(1,383	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,781		$	802		$	(775	)	$	3,246

⁽¹⁾ See Note 3 in Notes to Financial Statements.

⁽²⁾ See Note 9 in Notes to Financial Statements.

See Notes to Financial Statements.

243

	Limited Maturity Bond Fund			Total Return Advantage Fund			Ultra Short Bond Fund
Investment Income:
Interest from unaffiliated investments		$3,486			$5,380			$2,741
Dividends from affiliated investments(1)		6			3			8
Security lending income(2)		–			16			–
Total Investment Income		3,492			5,399			2,749
Expenses:
Investment advisory fees		1,059			755			765
Administration fees		156			99			196
12b-1 fees:
Class A		2			2			–
Class C		4			8			–
Shareholder servicing fees:
Class A		11			19			4
Class C		2			2			–
Transfer agent fees		52			59			31
Custodian fees		10			10			12
Professional fees		64			49			73
Pricing service fees		23			39			16
Printing and shareholder reports		19			25			17
Registration and filing fees		49			46			44
Trustees’ fees		22			15			26
Miscellaneous		35			12			35
Total Expenses		1,508			1,140			1,219
Less:
Waiver of investment advisory fees(1)		(7	)		(85	)		(9	)
Waiver of 12b-1 fees:
Class C		(2	)		–			–
Net Expenses		1,499			1,055			1,210
Net Investment Income (Loss)		1,993			4,344			1,539
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on investments sold		510			(2,688	)		107
Net change in unrealized appreciation/depreciation on investments		(530	)		523			195
Net Gain (Loss) on Investments		(20	)		(2,165	)		302
Net Increase (Decrease) in Net Assets Resulting from Operations		$1,973			$ 2,179			$1,841

⁽¹⁾ See Note 3 in Notes to Financial Statements.

⁽²⁾ See Note 9 in Notes to Financial Statements.

See Notes to Financial Statements.

244

P N C  T a x  E x e m p t  B o n d  F u n d s

S T A T E M E N T S  O F  O P E R A T I O N S  ( 0 0 0 )

F o r  t h e  Y e a r  E n d e d  M a y  3 1 ,  2 0 1 6

	Intermediate Tax Exempt Bond Fund			Maryland Tax Exempt Bond Fund			Ohio Intermediate Tax Exempt Bond Fund		Tax Exempt Limited Maturity Bond Fund
Investment Income:
Interest		$2,460			$1,461			$1,369		$2,662
Total Investment Income		2,460			1,461			1,369		2,662
Expenses:
Investment advisory fees		321			197			186		527
Administration fees		44			28			27		69
12b-1 fees:
Class A		1			–			1		–
Class C		2			–			4		–
Shareholder servicing fees:
Class A		5			1			11		1
Class C		1			–			1		–
Transfer agent fees		36			34			35		22
Custodian fees		3			2			2		4
Professional fees		36			32			32		40
Pricing service fees		10			7			7		18
Printing and shareholder reports		10			6			6		11
Registration and filing fees		43			12			15		27
Trustees’ fees		9			8			8		12
Miscellaneous		5			3			6		8
Total Expenses		526			330			341		739
Less:
Waiver of investment advisory fees(1)		(92	)		(68	)		–		(41	)
Net Expenses		434			262			341		698
Net Investment Income (Loss)		2,026			1,199			1,028		1,964
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on investments sold		482			612			734		194
Net change in unrealized appreciation/depreciation on investments		1,441			204			227		772
Net Gain (Loss) on Investments		1,923			816			961		966
Net Increase (Decrease) in Net Assets Resulting from Operations		$3,949			$2,015			$1,989		$2,930

⁽¹⁾ See Note 3 in Notes to Financial Statements.

See Notes to Financial Statements.

245

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P N C  F i x e d  I n c o m e  F u n d s

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S  ( 0 0 0 )

	Bond Fund						Government Mortgage Fund						High Yield Bond Fund
	For the Year Ended						For the Year Ended						For the Year Ended
	May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015
Investment Activities:
Net investment income (loss)		$    2,016			$    2,736			$     996			$     1,304			$     874			$   1,339
Net realized gain (loss) on investments sold		97			2,004			64			278			(2,232	)		413
Net change in unrealized appreciation/ depreciation on investments		(332	)		(1,279	)		(258	)		59			583			(1,630	)
Net increase (decrease) in net assets resulting from operations		1,781			3,461			802			1,641			(775	)		122
Dividends and Distributions to Shareholders:
Dividends from net investment income:
Class I		(2,132	)		(2,979	)		(1,102	)		(1,366	)		(832	)		(1,314	)
Class A		(56	)		(67	)		(211	)		(252	)		(42	)		(28	)
Class C		(3	)		(2	)		(14	)		(23	)		–			–
Distributions from net realized gains:
Class I		(977	)		(470	)		–			–			(137	)		(342	)
Class A		(37	)		(10	)		–			–			(5	)		(7	)
Class C		(3	)		(1	)		–			–			–			–
Total dividends and distributions		(3,208	)		(3,529	)		(1,327	)		(1,641	)		(1,016	)		(1,691	)
Share Transactions:
Proceeds from shares issued:
Class I		18,357			28,080			4,551			21,245			1,289			3,732
Class A		29			50			144			200			2,034			61
Class C		22			51			18			7			–			–
Reinvestment of dividends and distributions:
Class I		2,137			2,685			411			537			581			1,205
Class A		67			57			73			94			30			25
Class C		4			3			8			9			–			–
Total proceeds from shares issued and reinvested		20,616			30,926			5,205			22,092			3,934			5,023
Value of shares redeemed:
Class I		(81,441	)		(59,282	)		(12,250	)		(22,711	)		(8,132	)		(13,950	)
Class A		(335	)		(482	)		(774	)		(1,298	)		(314	)		(59	)
Class C		(32	)		(90	)		(456	)		(469	)		–			–
Total value of shares redeemed		(81,808	)		(59,854	)		(13,480	)		(24,478	)		(8,446	)		(14,009	)
Increase (decrease) in net assets from share transactions		(61,192	)		(28,928	)		(8,275	)		(2,386	)		(4,512	)		(8,986	)
Total increase (decrease) in net assets		(62,619	)		(28,996	)		(8,800	)		(2,386	)		(6,303	)		(10,555	)
Net Assets:
Beginning of year		148,944			177,940			61,408			63,794			19,782			30,337
End of year*		$  86,325			$148,944			$52,608			$61,408			$13,479			$ 19,782
*Including undistributed (distributions in excess of) net investment income		$        (29	)		$       (29	)		$     (16	)		$     (18	)		$         –			$        (2	)

See Notes to Financial Statements.

247

Intermediate Bond Fund						Limited Maturity Bond Fund						Total Return Advantage Fund						Ultra Short Bond Fund
For the Year Ended						For the Year Ended						For the Year Ended						For the Year Ended
May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015
	$    4,629			$    4,099			$    1,993			$    1,409			$    4,344			$    4,584			$    1,539			$        829
	(1,373	)		1,918			510			462			(2,688	)		3,198			107			(109	)
	(10	)		(991	)		(530	)		(525	)		523			(3,730	)		195			(176	)
	3,246			5,026			1,973			1,346			2,179			4,052			1,841			544
	(4,621	)		(4,078	)		(2,191	)		(1,766	)		(4,521	)		(4,831	)		(1,834	)		(1,484	)
	(50	)		(49	)		(26	)		(23	)		(175	)		(85	)		(3	)		(2	)
	(2	)		(1	)		–			–			(16	)		(13	)		–			–
	(990	)		(1,306	)		–			–			–			–			–			–
	(13	)		(17	)		–			–			–			–			–			–
	(1	)		(2	)		–			–			–			–			–			–
	(5,677	)		(5,453	)		(2,217	)		(1,789	)		(4,712	)		(4,929	)		(1,837	)		(1,486	)
	19,461			24,738			89,110			85,987			10,765			20,057			217,862			239,514
	302			92			2,242			4,140			8,829			176			3			13
	130			55			31			21			283			134			–			–
	3,063			3,472			1,483			1,159			1,565			1,297			900			538
	53			55			23			19			138			60			2			2
	3			2			–			–			3			3			–			–
	23,012			28,414			92,889			91,326			21,583			21,727			218,767			240,067
	(60,798	)		(58,170	)		(124,926	)		(103,196	)		(32,383	)		(78,727	)		(251,405	)		(264,904	)
	(600	)		(966	)		(1,837	)		(1,703	)		(1,273	)		(806	)		(272	)		(742	)
	(128	)		(358	)		(156	)		(655	)		(358	)		(96	)		–			–
	(61,526	)		(59,494	)		(126,919	)		(105,554	)		(34,014	)		(79,629	)		(251,677	)		(265,646	)
	(38,514	)		(31,080	)		(34,030	)		(14,228	)		(12,431	)		(57,902	)		(32,910	)		(25,579	)
	(40,945	)		(31,507	)		(34,274	)		(14,671	)		(14,964	)		(58,779	)		(32,906	)		(26,521	)
	336,046			367,553			327,724			342,395			196,402			255,181			409,091			435,612
	$295,101			$336,046			$ 293,450			$327,724			$181,438			$196,402			$ 376,185			$ 409,091
	$       (66	)		$       (42	)		$        (71	)		$       (72	)		$         22			$         20			$        (36	)		$        (39	)

See Notes to Financial Statements.

248

P N C  T a x  E x e m p t  B o n d  F u n d s

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S  ( 0 0 0 )

	Intermediate Tax Exempt Bond Fund						Maryland Tax Exempt Bond Fund						Ohio Intermediate Tax Exempt Bond Fund
	For the Year Ended						For the Year Ended						For the Year Ended
	May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015
Investment Activities:
Net investment income (loss)		$  2,026			$  2,085			$  1,199			$  1,376			$  1,028			$  1,403
Net realized gain (loss) on investments sold		482			559			612			(64	)		734			669
Net change in unrealized appreciation/ depreciation on investments		1,441			(683	)		204			(185	)		227			(1,120	)
Net increase (decrease) in net assets resulting from operations		3,949			1,961			2,015			1,127			1,989			952
Dividends and Distributions to Shareholders:
Dividends from net investment income:
Class I		(1,955	)		(2,008	)		(1,194	)		(1,366	)		(937	)		(1,287	)
Class A		(66	)		(80	)		(5	)		(10	)		(85	)		(112	)
Class C		(5	)		(6	)		–			(1	)		(6	)		(7	)
Distributions from net realized gains:
Class I		(238	)		(2,268	)		(118	)		(341	)		(481	)		(678	)
Class A		(9	)		(94	)		(1	)		(3	)		(49	)		(63	)
Class C		(1	)		(11	)		–			–			(6	)		(6	)
Total dividends and distributions		(2,274	)		(4,467	)		(1,318	)		(1,721	)		(1,564	)		(2,153	)
Share Transactions:
Proceeds from shares issued:
Class I		10,988			4,249			2,036			249			1,984			1,886
Class A		201			841			–			12			61			8
Class C		38			147			1			1			–			–
Reinvestment of dividends and distributions:
Class I		146			383			60			93			91			136
Class A		45			118			3			4			113			147
Class C		4			12			–			1			9			10
Total proceeds from shares issued and reinvested		11,422			5,750			2,100			360			2,258			2,187
Value of shares redeemed:
Class I		(9,066	)		(8,531	)		(6,759	)		(4,536	)		(7,072	)		(13,323	)
Class A		(214	)		(887	)		(100	)		(259	)		(543	)		(825	)
Class C		(127	)		(107	)		(35	)		(1	)		(4	)		(1	)
Total value of shares redeemed		(9,407	)		(9,525	)		(6,894	)		(4,796	)		(7,619	)		(14,149	)
Increase (decrease) in net assets from share transactions		2,015			(3,775	)		(4,794	)		(4,436	)		(5,361	)		(11,962	)
Total increase (decrease) in net assets		3,690			(6,281	)		(4,097	)		(5,030	)		(4,936	)		(13,163	)
Net Assets:
Beginning of year		78,836			85,117			50,698			55,728			49,453			62,616
End of year*		$82,526			$78,836			$46,601			$50,698			$44,517			$ 49,453
*Including undistributed (distributions in excess of) net investment income		$     146			$     146			$       (3	)		$       (3	)		$     (68	)		$       (66	)

See Notes to Financial Statements.

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	Tax Exempt Limited Maturity Bond Fund
	For the Year Ended
	May 31, 2016			May 31, 2015
Investment Activities:
Net investment income (loss)		$    1,964			$    2,091
Net realized gain (loss) on investments sold		194			2
Net change in unrealized appreciation/depreciation on investments		772			(1,466	)
Net increase (decrease) in net assets resulting from operations		2,930			627
Dividends and Distributions to Shareholders:
Dividends from net investment income:
Class I		(1,961	)		(2,085	)
Class A		(3	)		(6	)
Total dividends and distributions		(1,964	)		(2,091	)
Proceeds from shares issued:
Class I		37,506			18,514
Class A		15			10
Reinvestment of dividends:
Class I		170			195
Class A		3			5
Total proceeds from shares issued and reinvested		37,694			18,724
Value of shares redeemed:
Class I		(39,955	)		(28,966	)
Class A		(222	)		(28	)
Total value of shares redeemed		(40,177	)		(28,994	)
Increase (decrease) in net assets from share transactions		(2,483	)		(10,270	)
Total increase (decrease) in net assets		(1,517	)		(11,734	)
Net Assets:
Beginning of year		133,533			145,267
End of year*		$132,016			$133,533
*Including undistributed (distributions in excess of) net investment income		$        (20	)		$        (20	)

See Notes to Financial Statements.

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1. Fund Organization

PNC Funds (the “Trust”), a Delaware statutory trust, is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. As of May 31, 2016, the Trust offered for sale shares of 33 Funds. Each of the Funds is authorized to issue various classes of shares (individually, a “Class”, collectively, the “Classes”). Each share class represents an interest in the same portfolio of investments of the respective Fund and is substantially the same in all respects, except that the classes are subject to different distribution (12b-1) fees and/or shareholder services fees, sales charges and investment minimums. With respect to the Target Date, Equity, Fixed Income and Tax Exempt Bond Funds, as defined below, Class I Shares, Class R Shares, Class R4 Shares and Class R5 Shares are sold without a sales charge; Equity, Fixed Income and Tax Exempt Bond Funds’ Class A Shares are sold subject to a front-end sales charge; Balanced Allocation and Target Date Funds’ Class T Shares are sold subject to a front-end sales charge; and Equity, Fixed Income and Tax Exempt Bond Funds’ Class C Shares are sold with a contingent deferred sales charge. Front-end sales charges and contingent deferred sales charges may be reduced or waived under certain circumstances.

Effective February 29, 2016, the Trust began offering Class A Shares, Class I Shares and Class R Shares of PNC International Growth Fund. PNC International Growth Fund commenced operations on February 29, 2016.

As of May 31, 2016, the Trust offered five categories of Funds:

Target Date Funds

PNC Retirement Income Fund, PNC Target 2020 Fund, PNC Target 2030 Fund, PNC Target 2040 Fund and PNC Target 2050 Fund;

Equity Funds

PNC Balanced Allocation Fund, PNC International Equity Fund, PNC International Growth Fund, PNC Large Cap Core Fund, PNC Large Cap Growth Fund, PNC Large Cap Value Fund, PNC Mid Cap Fund, PNC Mid Cap Index Fund, PNC Multi-Factor Small Cap Core Fund, PNC Multi-Factor Small Cap Growth Fund, PNC Multi-Factor Small Cap Value Fund, PNC S&P 500 Index Fund, PNC Small Cap Fund and PNC Small Cap Index Fund;

Fixed Income Funds

PNC Bond Fund, PNC Government Mortgage Fund, PNC High Yield Bond Fund, PNC Intermediate Bond Fund, PNC Limited Maturity Bond Fund, PNC Total Return Advantage Fund and PNC Ultra Short Bond Fund;

Tax Exempt Bond Funds

PNC Intermediate Tax Exempt Bond Fund, PNC Maryland Tax Exempt Bond Fund, PNC Ohio Intermediate Tax Exempt Bond Fund and PNC Tax Exempt Limited Maturity Bond Fund; and

Money Market Funds

PNC Government Money Market Fund, PNC Tax Exempt Money Market Fund and PNC Treasury Money Market Fund.

The financial statements presented herein are those of the Target Date, Equity, Fixed Income and Tax Exempt Bond Funds (each referred to as a “Fund,” or collectively as the “Funds”). The financial statements of the Money Market Funds are not presented herein, but are presented separately.

2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Fund qualifies as an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to the Investment Companies Topic of U.S. GAAP.

Effective June 1, 2015, the Funds adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that expanded secured borrowing accounting for certain repurchase agreements and also set forth additional disclosure requirements for certain transactions accounted for as sales in order to provide financial statement users with information to compare to similar transactions accounted for as secured borrowings. Adoption of the guidance necessitated additional disclosure related to securities lending (see Note 9).

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The following is a summary of significant accounting policies followed by the Funds.

Investment Valuation

The funds typically value equity securities, exchange-traded funds (“ETFs”), master limited partnerships (“MLPs”), and other equity securities listed on a securities exchange or quoted on a national market system based on the last quoted sales price at the official close of trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, or the exchange on which they are traded, when market quotations are readily available for such a security. The Funds’ value their portfolio securities for purposes of calculating their net asset values (“NAV”) using procedures approved by the Funds’ Board of Trustees. Those procedures allow for a variety of methodologies to be used to value a Fund’s securities. The specific methodologies used for a particular security may vary based on the market data available for a specific security at the time a Fund calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. Accordingly, the methodologies summarized below are not an exhaustive list of the methodologies a Fund may use to value a security and they may not represent the means by which a Fund’s investments are valued on any particular day. Other securities traded on over-the-counter markets are valued on the basis of their closing over-the-counter bid prices. Equity securities and ETFs for which there were no transactions, and for which market quotations are not readily available, are typically valued at the mean between the most recent bid and asked prices. Assets of the Funds invested in debt securities are typically valued based on evaluations provided by an independent pricing service (“Service”) approved by the Board of Trustees of the Trust (the “Board”). A number of pricing services are available and the Funds may use various pricing services or discontinue the use of any pricing service. When quoted bid prices for portfolio securities are readily available and are representative of the bid side of the market, these investments are valued at the quoted bid prices (as obtained by a Service from dealers in such securities). The Funds, under supervision of the Board, reserve the right to alternatively utilize the mean between the most recent bid and asked prices for fixed income securities, should such prices be determined to more accurately represent the value of those fixed income securities. Debt securities as well as other investments may be carried at fair value based on methods which include consideration of yields or prices of bonds of comparable quality, stability, risk, coupon, maturity, type, trading characteristics and other market data or factors; indications as to values from dealers or other financial institutions that trade the securities; and general market conditions.

Short-term obligations with maturities of 60 days or less when purchased are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. If this method is determined to be unreliable during certain market conditions or for other reasons, a Fund may value its investments at market price, or fair value prices may be determined in good faith using methods approved by the Board. Short-term obligations with greater than 60 days to maturity when purchased are valued at mark-to-market until the 60th day before maturity; after which they are valued at amortized cost until maturity.

Portfolio securities which are primarily traded on foreign securities exchanges are valued at the last sale price on that exchange or, if there is no recent sale, at the last current bid quotation. Such securities are generally valued at the preceding closing values of such securities on their respective exchanges. A security which is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security at the official close of trading on the day of valuation. For valuation purposes, quotations of foreign securities in foreign currency are converted to U.S. dollar equivalents at the prevailing market rate at the close of market on the day of valuation. Certain foreign securities may be traded on foreign exchanges or over-the-counter markets on days on which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on days when investors can neither purchase nor redeem shares of the Fund.

Investments in underlying PNC Funds or in any other mutual funds are valued at their respective NAV as determined by those funds each business day.

Forward currency contracts are valued based upon closing forward foreign exchange rates from each respective foreign market.

Futures contracts are valued at the daily quoted settlement prices at the official close of trading on the day of valuation.

The Board has approved and regularly reviews fair value pricing methods to be used in determining the good faith value of the investments of the Funds in the event that market quotations are not readily available or, if available, do not reflect the impact of certain market events. Fair valuation most commonly occurs with foreign securities. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/asked information, broker quotes), including where events occur after the close of the relevant market, but prior to the close of trading, that affect the values of a Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading the entire day and no other market prices are available. Significant events (e.g., movement in the U.S. securities market, or other regional and local developments) may occur between the time that foreign markets close (where the security is principally traded) and the time that the Fund calculates its NAV (generally, the close of trading) that may impact the value of securities traded in these foreign markets. In these cases, information furnished daily by the Service may be utilized to adjust closing market prices of certain foreign common stocks to reflect their fair value. Because the incidence of significant events is not predictable, fair valuation of certain securities may occur on a frequent basis. When fair value pricing is employed, the prices of securities used by a Fund to calculate its NAV may differ from quoted or published prices for the same securities.

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Fair value represents the estimated price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment. Valuation techniques should maximize the use of observable market data and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Fund. Unobservable inputs are inputs that reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Fair value measurements utilize a hierarchy based on the observability of inputs used to establish fair value. These inputs, listed below, are summarized in three broad levels. Assets and liabilities reported at fair value are classified on the basis of the lowest level input that is significant to fair value:

● Level 1 — quoted prices in active markets for identical assets and liabilities, including, but not limited to:

Equity securities and ETFs for which market quotations are readily available, that are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded.

Investment Companies – investments in open-end mutual funds which are valued at their closing NAV.

Futures contracts which are valued at their daily closing price on the primary exchange on which they are traded.

● Level 2 — other significant observable inputs, including but not limited to:

All Securities – quoted prices for similar securities; quoted prices based on recently executed transactions; adjusted quoted prices based on observable and formulaic inputs; certain non-exchange traded derivatives such as swaps, forwards, or over-the-counter traded options based on pricing models using inputs observed on actively quoted markets; or, observable correlated market inputs.

Equity Securities – certain foreign equity securities that are fair value adjusted through an independent pricing service, which considers statistically relevant trading pattern correlations in relation to the intraday trading in the U.S. securities markets, such as the movement of certain indexes, American Depositary Receipts, futures or ETFs.

Fixed Income Securities – independent pricing service-supplied valuations or quoted prices for similar securities or obligations, including matrix pricing, based on methods which consider standard inputs such as yields or prices of securities or obligations of comparable quality, stability, risk, coupon, collateral (as applicable), maturity, type, trading factors, multiple indications of value from dealers or other financial institutions that trade the securities or obligations.

● Level 3 — significant unobservable inputs, including but not limited to:

All Securities – modeling or manual pricing based on each Fund’s own assumptions in determining fair value of investments; or, the significant use of unobservable inputs or stale inputs.

Each Fund recognizes transfers into and out of levels, if any, at the end of the reporting period. Certain foreign equity securities are fair value adjusted through a Service which considers statistically relevant trading patterns. Such securities may periodically move between input valuation Level 1 and input valuation Level 2 based on whether or not they meet fair value adjustment trigger requirements. Securities that meet the fair value adjustment trigger requirements are considered input valuation Level 2 securities.

Other financial instruments are derivative instruments not reflected in total investments within the Schedules of Investments, such as futures and forwards, which are reflected in net assets at the unrealized appreciation/depreciation on the investment.

The inputs and methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The valuation hierarchy of each Fund’s securities as of May 31, 2016 can be found at the end of each Fund’s Schedule of Investments.

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Investment Transactions, Investment Income and Expenses

Investment transactions are recorded on a trade date basis for financial statement preparation purposes. Realized gains and losses on investments sold are recorded on the identified cost basis. Interest income is recorded on the accrual basis. Discounts and premiums are accreted and amortized, respectively, to interest income over the estimated lives of the respective investments using the effective interest method. Dividends are recorded on the ex-dividend date, or in the case of certain foreign securities, as soon as the respective Fund is notified. Certain countries may impose taxes on the Funds with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned. The Funds accrue such taxes when the related income is earned. Expenses that are common to all of the Funds in the Trust are allocated among the Funds primarily on the basis of each Fund’s respective average net assets. However, other allocation methodologies may also be utilized when appropriate for a given circumstance, including a fixed or straight-line allocation across Funds. Expenses that are common to all Classes, investment income, and realized and unrealized gains and losses on investments are allocated to each Class based upon the relative daily net assets of each Class. Distribution (12b-1) fees and shareholder services fees relating to a specific Class are charged directly to that Class.

Dividends and Distributions to Shareholders

With respect to the Fixed Income and Tax Exempt Bond Funds, dividends from net investment income are declared daily and paid monthly. Dividends from net investment income, if any, for Retirement Income, Balanced Allocation, Large Cap Core, Large Cap Value and S&P 500 Index Funds are declared and paid quarterly. Dividends from net investment income, if any, for Target 2020, Target 2030, Target 2040, Target 2050, International Equity, International Growth, Large Cap Growth, Mid Cap, Mid Cap Index, Multi-Factor Small Cap Core, Multi-Factor Small Cap Growth, Multi-Factor Small Cap Value, Small Cap and Small Cap Index Funds are declared and paid annually. Net realized capital gains, if any, will be distributed at least annually by each of the Funds. Dividends and distributions to shareholders are recorded on the ex-dividend date.

Delayed-Delivery Transactions

Certain Funds may purchase or sell securities on a delayed-delivery basis. These transactions involve a commitment by a Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, a Fund will designate liquid assets in the amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery securities before they are delivered, which may result in a capital gain or loss. When a Fund has sold a security on a delayed-delivery basis, the Fund does not participate in any future gains and losses with respect to the security.

Exchange-Traded Funds

Certain Funds may invest in ETFs. The ETFs in which the Funds may invest may include actively managed ETFs as well as ETFs that generally seek investment results that correspond generally to the performance, before fees and expenses, of an underlying index. As a result, adverse performance of a particular security in an ETF’s underlying portfolio will ordinarily not result in the elimination of the security from the ETF’s portfolio. Each ETF offers and issues shares at its NAV per share only to certain institutional investors in aggregations of a specified number of shares, generally in exchange for a basket of securities included in its underlying index, together with the deposit of a specified cash payment. ETFs are listed and traded on national securities exchanges and also may be listed on certain non-U.S. exchanges.

ETFs are subject to additional risks due to their shares being listed and traded on securities exchanges. The per share NAV of an ETF is calculated at the end of each business day and fluctuates with changes in the market value of the ETF’s holdings since the most recent calculation. The trading prices of an ETF’s shares fluctuate continuously throughout trading hours based on market supply and demand as well as changes in market value. The trading prices of an ETF’s shares may deviate significantly from NAV during periods of market volatility. Any of these factors may lead to an ETF’s shares trading at a premium or discount to NAV.

There can be no assurance that an active trading market for these particular ETFs will develop or be maintained. Trading in ETFs may be halted because of market conditions or for reasons that, in the view of the listing exchange, make trading in ETFs inadvisable. In addition, trading in ETFs is subject to trading halts caused by extraordinary market volatility pursuant to “circuit breaker” rules. There can be no assurance that the requirements necessary to maintain the listing of ETFs will continue to be met or will remain unchanged.

Foreign Currency Translation

The books and records of the Funds are maintained in U.S. dollars as follows: (1) the foreign currency market values of investment securities and other assets and liabilities stated in foreign currencies are translated at the exchange rates prevailing at the end of the period; and (2) purchases, sales and income are translated at the rates of exchange prevailing on the respective dates of such transactions. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement from foreign currency transactions are reported in the Statements of Operations for the current period. The Funds do not isolate the portion of gains and losses on investments which is due to fluctuations in foreign exchange rates from that which is due to fluctuations in the market prices of investments.

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Inflation-Indexed Securities

Certain Funds may invest in inflation-protected securities either directly or through pooled investment vehicles such as ETFs or mutual funds. Inflation-protected securities, unlike traditional debt securities that make fixed or variable principal and interest payments, are structured to provide protection against the negative effects of inflation. The value of the debt securities’ principal is adjusted to track changes in an official inflation measure. For example, the U.S. Treasury currently uses the Consumer Price Index for Urban Consumers as a measure of inflation for Treasury Inflation-Protected Securities (“TIPS”). Other inflation-protected securities may not carry a similar guarantee by their issuer. A Fund may buy TIPS that are designed to provide an investment vehicle that is not vulnerable to inflation. The interest rate paid by TIPS is fixed. The principal value rises or falls semi-annually based on the changes in the published Consumer Price Index. If inflation occurs, the principal and interest payments on TIPS are adjusted to protect investors from inflationary loss. If deflation occurs, the principal and interest payments will be adjusted downward, although the principal will not fall below its face amount at maturity. The Target Date Funds primarily utilize pooled investment vehicles that hold Inflation-Indexed Securities in order to maintain exposure to TIPS.

Master Limited Partnerships

Certain Funds may invest in MLPs. The majority of MLPs operate in the energy and/or natural resources sector. MLPs are generally organized under state law as limited partnerships or limited liability companies. An MLP consists of at least one general partner as well as other additional limited partners (for MLPs structured as limited liability companies, at least one managing member and members, respectively). The general partner or managing member controls the operations and management of the MLP and has an ownership stake in the MLP. The limited partners or members, through their ownership of limited partner or member interests, contribute capital to the entity, have a limited role in the operation and management of the entity, and receive cash distributions.

Derivative Financial Instruments

Commodity-Linked Instruments

Certain Funds may invest in commodities indirectly through pooled investment vehicles such as ETFs or mutual funds. Pooled investment vehicles may hold commodities, commodities-based derivatives or financial instruments where the reference asset is a commodity or commodity index. Such investments in commodities or commodity-linked instruments may expose the pooled investment vehicle to greater volatility than investments in traditional securities. The prices of commodities can swing sharply in response to cyclical economic conditions, political events or the monetary policies of various countries, potentially causing the value of a Fund’s securities to be more volatile or to decline in value significantly. In addition, political, economic and other conditions in a limited number of commodity-producing countries may have a direct effect on the market value of commodities and the companies that engage in related businesses. Pooled investment vehicles may use commodities-based derivatives that are leveraged and therefore may magnify or otherwise increase investment losses to a Fund.

Foreign Equity Certificates

Certain Funds may invest in foreign equity certificates (“certificates”) which are sometimes also called equity-linked certificates or participation notes and may be issued in various forms such as low exercise price or Rule 144A warrants. When doing so, the Fund purchases the certificates from an issuer, who may or may not hold shares of the underlying stock (“equity security”) in the local market and issues a call note for the underlying equity security. If the Fund exercises its call and closes its position, the shares are sold and the note is redeemed with the proceeds. Each note represents one share of the underlying equity security; therefore, the price, performance and liquidity of the note are all directly linked to the underlying equity security. The notes can be redeemed for the full value of the underlying equity security, less transactional and other costs. Such certificates are typically utilized as a cost-effective means of direct investment into certain markets. In addition to the market risk related to the value of the underlying equity security, the Fund bears additional counterparty risk to the issuer or guarantor of the unsecured notes.

Forward Currency Contracts

Certain Funds may enter into forward currency contracts. These contracts involve an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract. Forward currency contracts do not eliminate fluctuations in the values of portfolio securities but rather allow the Funds to establish a rate of exchange for a future point in time. Each contract is valued daily and the change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the opening value and the closing value of the contract. Such contracts, which may be designed to protect the value of the Fund’s investment securities against an adverse movement in the value of the hedged currency, do not eliminate fluctuations in the underlying prices of the securities; they simply establish an exchange rate at a future date. Although     

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such contracts tend to minimize the risk of loss due to an adverse movement in the value of a hedged currency, at the same time they tend to limit the potential gain that might be realized should the value of such foreign currency unexpectedly move opposite to the hedge. These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. The Funds could be exposed to risk if the counterparties to the contracts are unable to meet the terms of the contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The unrealized gain or loss on open forward currency contracts at May 31, 2016 is included in the respective Fund’s Schedule of Investments. The change in the unrealized gain or loss on open forward currency contracts and the gain or loss recognized upon the close of forward currency contracts for the fiscal year ended May 31, 2016 are included in the respective Fund’s Statement of Operations.

Futures Contracts

Certain Funds may invest in futures contracts on among other things, stocks, stock indexes, financial instruments (such as a U.S. government security or other fixed income security), interest rates, currencies, or inflation indexes and in options on futures contracts. A futures contract provides for the future sale by one party and the purchase by another party of a specified amount of a financial instrument or money at a specified time and price. Futures contracts are valued at the daily quoted settlement prices. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract and are included in the respective Fund’s Statement of Assets and Liabilities. The daily change in the contract is recorded as an unrealized gain or loss. The Fund recognizes a realized gain or loss when the contract is closed. The unrealized gain or loss on open futures contracts at May 31, 2016 is included in the respective Fund’s Schedule of Investments. The change in the unrealized gain or loss on open futures contracts and the gain or loss recognized upon the close of futures contracts for the fiscal year ended May 31, 2016 are included in the respective Fund’s Statement of Operations.

There are several risks associated with the use of futures contracts including the risk of loss in excess of the amount recognized in a Fund’s Schedule of Investments. The change in value of futures contracts primarily corresponds with the value of their underlying instruments, which may not correlate with the change in value of the investments held by the Fund. The Funds are subject to equity price risk in the normal course of pursuing its investment objectives. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market. Certain Funds, particularly the International Equity and Balanced Allocation Funds, may also use futures to gain cost efficient diversified exposure to a specific country or region.

Equity Index futures may be used by the Equity Funds to maintain market exposure for short-term liquidity within a respective Fund. To accomplish such a strategy, a Fund may purchase an Equity Index future to maintain market exposure in lieu of purchasing individual securities for portions of the Fund that are being held for short-term liquidity or other reasons. Details of futures contracts open as of May 31, 2016 are included in the respective Fund’s Schedule of Investments.

Derivative Holdings Categorized by Risk Exposure

The following information is intended to enable financial statement users to understand how derivatives are accounted for and how derivative instruments affect a Fund’s financial position and results of operations. The derivative instruments listed in the following tables were not designated in qualifying hedge accounting relationships.

	Location on the Statement of Assets and Liabilities
Derivative Type	Asset Derivative Value	Liability Derivative Value
Equity contracts	Variation margin receivable from broker for open     futures contracts*	Variation margin payable to broker for open     futures contracts*
Foreign exchange contracts	Net unrealized appreciation on forward currency     contracts	Net unrealized depreciation on forward currency     contracts

*The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation/depreciation for open futures contracts. The balance presented below is the cumulative change in unrealized appreciation/depreciation from the date the contract was opened until May 31, 2016 and is included in the Net Assets of the Fund.

	Equity Contracts (000)		Foreign Exchange Contracts (000)		Total Value     at     05/31/16     (000)
Asset Derivative Value
Balanced Allocation Fund
Forward Currency Contracts		$–		$50		$50

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	Equity Contracts (000)		Foreign Exchange Contracts (000)		Total Value     at 05/31/16     (000)
International Equity Fund
Forward Currency Contracts	$	–	$	2,525	$	2,525
Futures Contracts		74		–		74
	$	74	$	2,525	$	2,599
Large Cap Growth Fund
Futures Contracts	$	44	$	–	$	44
S&P 500 Index Fund Futures Contracts	$	44	$	–	$	44
Liability Derivative Value
Balanced Allocation Fund Forward Currency Contracts	$	–	$	48	$	48
International Equity Fund Forward Currency Contracts	$	–	$	2,430	$	2,430

	Location on the Statement of Operations
Derivative Type
Equity contracts	Net realized gain (loss) on futures Net change in unrealized appreciation/depreciation on futures
Foreign exchange contracts	Net realized gain (loss) on foreign currency transactions Net change in unrealized appreciation/depreciation on foreign currency translation

	Equity Contracts (000)				Foreign Exchange Contracts (000)				Total Value         at         05/31/16          (000)
Realized Gain (Loss) on Derivatives Recognized in Income
Balanced Allocation Fund
Futures Contracts		$	23			$	–			$	23
Forward Currency Contracts			–				32				32
		$	23			$	32			$	55
International Equity Fund
Futures Contracts		$	(1,084	)		$	–			$	(1,084)
Forward Currency Contracts			–				1,783				1,783
		$	(1,084	)		$	1,783			$	699
Large Cap Growth Fund Futures Contracts		$	(38	)		$	–			$	(38)
Multi-Factor Small Cap Core Fund Futures Contracts		$	(115	)		$	–			$	(115)
Multi-Factor Small Cap Growth Fund Futures Contracts		$	(46	)		$	–			$	(46)
Small Cap Fund Futures Contracts		$	44			$	–			$	44
Change in Unrealized Appreciation/Depreciation                         on Derivatives Recognized in Income
Balanced Allocation Fund Futures Contracts		$	(14	)		$	–			$	(14)
Forward Currency Contracts			–				(44	)			(44)
		$	(14	)		$	(44	)		$	(58)
International Equity Fund Futures Contracts		$	(328	)		$	–			$	(328)
Forward Currency Contracts			–				(2,226	)			(2,226)
		$	(328	)		$	(2,226	)		$	(2,554)

257

	Equity Contracts (000)				Foreign Exchange Contracts (000)			Total Value at 05/31/16 (000)
Large Cap Growth Fund Futures Contracts		$	33			$	–		$	33
S&P 500 Index Fund Futures Contracts		$	12			$	–		$	12
Small Cap Fund Futures Contracts		$	(42	)		$	–		$	(42)

During the fiscal year ended May 31, 2016, the futures and forwards transactions executed by the Equity Funds are shown in the following table.

	Notional Cost of Contracts May 31, 2015 (000)			Notional Cost of Contracts Opened (000)			Notional Cost of Contracts Closed (000)				Notional Cost        of Contracts             May 31, 2016              (000)
Balanced Allocation Fund
Forward Currency Contracts		$	585		$	1,886		$	(1,357	)		$	1,114
Futures Contracts			155			337			(492	)			–
International Equity Fund
Forward Currency Contracts			29,667			144,401			(117,529	)			56,539
Futures Contracts			14,802			50,197			(62,223	)			2,776
Large Cap Growth Fund
Futures Contracts			1,042			4,832			(4,871	)			1,003
Multi-Factor Small Cap Core Fund
Futures Contracts			–			7,511			(7,511	)			–
Multi-Factor Small Cap Growth Fund
Futures Contracts			–			1,817			(1,817	)			–
S&P 500 Index Fund
Futures Contracts			1,021			4,031			(4,049	)			1,003
Small Cap Fund
Futures Contracts			1,202			1,260			(2,462	)			–

Master Agreements and Netting Arrangements

Certain Funds are parties to various agreements, including but not limited to International Swaps and Derivatives Association (“ISDA”) Agreements and a Securities Loan Agreement, which govern the terms of certain transactions with select counterparties (collectively “Master Agreements”). These Master Agreements generally include provisions for general obligations, agreements, representations, collateral and certain events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions. The netting arrangements are generally tied to credit related events that if triggered, would cause an event, default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination or default event, the total market value exposure would be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. Credit related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. An election made by a counterparty to terminate a transaction early under a Master Agreement could have an adverse impact on a Fund’s financial statements. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Collateral under the Master Agreements is usually in the form of cash but can include other types of securities. There can be no assurance that the Master Agreements will be successful in limiting credit or counterparty risk.

258

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Offsetting of Financial and Derivative Assets and Liabilities

The following tables show the financial and derivative instruments of each Fund that are subject to Master Agreements (or similar arrangements) and the collateral received and pledged in connection with the netting arrangements at May 31, 2016.

Offsetting of Financial and Derivative Assets

Description	Form of Master Agreement	Gross Amounts Presented in the Statement of Assets and Liabilities (000)			Gross Amounts Netted in the Statement of Assets and Liabilities (000)			Net Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instruments (000)				Cash Collateral Received(1) (000)				Net       Amount       (000)
Balanced Allocation Fund
Forward Currency Contracts	ISDA		$	50		$	–		$	50		$	(48	)		$	–			$	2
Securities Lending(2)	Securities Loan Agreement			437			–			437			–				(437	)			–
			$	487		$	–		$	487		$	(48	)		$	(437	)		$	2
International Equity Fund
Forward Currency Contracts	ISDA		$	2,525		$	–		$	2,525		$	(2,430	)		$	–			$	95
Securities Lending(2)	Securities Loan Agreement			43,611			–			43,611			–				(43,611	)			–
			$	46,136		$	–		$	46,136		$	(2,430	)		$	(43,611	)		$	95
Large Cap Core Fund
Securities Lending(2)	Securities Loan Agreement		$	282		$	–		$	282		$	–			$	(282	)		$	–
Large Cap Growth Fund
Securities Lending(2)	Securities Loan Agreement		$	1,536		$	–		$	1,536		$	–			$	(1,536	)		$	–
Mid Cap Fund
Securities Lending(2)	Securities Loan Agreement		$	811		$	–		$	811		$	–			$	(811	)		$	–
Multi-Factor Small Cap Core Fund
Securities Lending(2)	Securities Loan Agreement		$	5,233		$	–		$	5,233		$	–			$	(5,233	)		$	–
Multi-Factor Small Cap Growth Fund
Securities Lending(2)	Securities Loan Agreement		$	2,414		$	–		$	2,414		$	–			$	(2,414	)		$	–
Multi-Factor Small Cap Value Fund
Securities Lending(2)	Securities Loan Agreement		$	2,641		$	–		$	2,641		$	–			$	(2,641	)		$	–
S&P 500 Index Fund
Securities Lending(2)	Securities Loan Agreement		$	635		$	–		$	635		$	–			$	(635	)		$	–
Small Cap Fund
Securities Lending(2)	Securities Loan Agreement		$	60,030		$	–		$	60,030		$	–			$	(60,030	)		$	–
Bond Fund
Securities Lending(2)	Securities Loan Agreement		$	237		$	–		$	237		$	–			$	(237	)		$	–
High Yield Bond Fund
Securities Lending(2)	Securities Loan Agreement		$	212		$	–		$	212		$	–			$	(212	)		$	–
Intermediate Bond Fund
Securities Lending(2)	Securities Loan Agreement		$	3,595		$	–		$	3,595		$	–			$	(3,595	)		$	–
Total Return Advantage Fund
Securities Lending(2)	Securities Loan Agreement		$	1,585		$	–		$	1,585		$	–			$	(1,585	)		$	–

⁽¹⁾Excess of collateral received from the individual counterparty may not be shown for financial reporting purposes.

⁽²⁾Reflects the market value of securities on loan as presented on the Schedule of Investments. Short-term investments purchased with collateral from securities lending and the related liability to repay the collateral is reported on the Statement of Assets and Liabilities.

3. Investment Advisory Fees and Other Transactions with Affiliates

Investment Advisory and Sub-Advisory Fees

Fees paid by the Trust pursuant to the Advisory Agreement with PNC Capital Advisors, LLC (the “Adviser”), an indirect wholly owned subsidiary of The PNC Financial Services Group, Inc. (“PNC Group”), are payable monthly and are calculated at an annual rate of each Fund’s average daily net assets.

259

Target Date Funds

The Adviser and the Target Date Funds have entered into an investment advisory agreement pursuant to which each Fund will pay the Adviser a fee equal to the annual rate of 0.40% of that Fund’s average daily net assets that are not invested in (1) other registered investment companies, (2) pooled investment vehicles that charge a fee for advisory services, and (3) exchange-traded notes the contractual returns of which are calculated by reference to the performance of a broad-based securities market index (collectively referred to as “Investment Companies”). The Adviser has contractually agreed to waive its management fee and reimburse or pay certain operating expenses for each Fund to the extent the Fund’s other expenses exceed 0.10% , 0.35% and 0.60% for Class I, Class R and Class T Shares, respectively, on an annualized basis, excluding certain expenses such as extraordinary expenses, administrative fees payable to the Adviser, taxes, portfolio transaction and other investment-related costs (including brokerage commissions, dealer and underwriter spreads, commitment fees on leverage facilities, prime broker fees and expenses, interest expense, dividend expenses related to short sales and the operating expenses of each Fund’s underlying investments). This expense limitation agreement will apply until February 28, 2017, at which time the Fund’s Adviser will determine whether to renew, revise or discontinue it, except that it may be terminated by the Board at any time.

The following table lists the contractual advisory fees and expense reimbursements that were in effect during the fiscal year ended May 31, 2016 for the Target Date Funds.

	Advisory Fees as a Percentage of Average Net Assets
	Annual Rate*	Expense        Reimbursement
Retirement Income Fund	0.00%	4.92%
Target 2020 Fund	0.00%	2.56%
Target 2030 Fund	0.00%	2.40%
Target 2040 Fund	0.00%	5.13%
Target 2050 Fund	0.00%	14.61%

    *   During the year ended May 31, 2016, the Target Date Funds were solely invested in Investment Companies.

Equity Funds

The following tables list the contractual advisory fees and fee waivers that were in effect during the fiscal year ended May 31, 2016 for the Equity Funds.

	Advisory Fees as a Percentage of Average Net Assets
	Annual Rate	Effective   Annual   Rate			Fee   Waiver*			Net   Effective   Annual   Rate			Expense  Reimbursement*
Balanced Allocation Fund	0.75%		0.75	%		0.36	%		0.39	%		N/A
International Equity Fund	0.90%		0.90	%		0.08	%		0.82	%		N/A
International Growth Fund	0.80%		0.80	%		0.80	%		0.00	%		4.83%
Mid Cap Fund	0.75%		0.75	%		0.75	%		0.00	%		0.24%
Mid Cap Index Fund	0.15%		0.15	%		0.15	%		0.00	%		2.36%
Multi-Factor Small Cap Core Fund	0.90%		0.90	%		0.34	%		0.56	%		N/A
Multi-Factor Small Cap Growth Fund	0.90%		0.90	%		0.59	%		0.31	%		N/A
Multi-Factor Small Cap Value Fund	0.90%		0.90	%		0.78	%		0.12	%		N/A
Small Cap Fund	0.90%		0.90	%		0.11	%		0.79	%		N/A
Small Cap Index Fund	0.15%		0.15	%		0.15	%		0.00	%		1.69%

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	Advisory Fees as a Percentage of Average Net Assets
	Annual Rate
	First   $1 Billion			Next   $500 Million			$1.5 Billion   and Over			Effective   Annual   Rate			Fee   Waiver*			Net   Effective   Annual   Rate			Expense Reimbursement*
Large Cap Core Fund		0.75	%		0.70	%		0.65	%		0.75	%		0.38	%		0.37	%		N/A
Large Cap Growth Fund		0.75	%		0.70	%		0.65	%		0.75	%		0.17	%		0.58	%		N/A
Large Cap Value Fund		0.75	%		0.70	%		0.65	%		0.75	%		0.10	%		0.65	%		N/A
	Advisory Fees as a Percentage of Average Net Assets
	Annual Rate
	First   $50 Million			Next   $100 Million			$150 Million   and Over			Effective   Annual   Rate			Fee   Waiver*			Net   Effective   Annual   Rate			Expense Reimbursement*
S&P 500 Index Fund		0.15	%		0.10	%		0.075	%		0.11	%		0.11	%		0.00	%		0.01%

* These waivers and reimbursements, which are presented on an annualized basis in the above table, are the result of the contractual expense limitation agreement which will apply until February 28, 2017, except that it may be terminated by the Board at any time. Each Fund may be obligated to pay the Adviser all amounts previously waived or reimbursed by the Adviser pursuant to the expense limitation agreements. For additional detail, see “Expense Recoupment,” below.

Polaris Capital Management, LLC (“Polaris”), an independent registered investment adviser, serves as sub-adviser to a portion of the managed assets of International Equity Fund. For its services, Polaris is paid a sub-advisory fee by the Adviser based on the portion of assets of International Equity Fund allocated to Polaris as follows: 0.35% of the first $125 million of assets managed, 0.40% of the assets managed between $125 million and $200 million and 0.50% of assets managed in excess of $200 million.

The Adviser may, from time to time, waive any portion of its fees and reimburse certain expenses of a Fund. Such waivers and reimbursements may be voluntary or contractual. The Adviser contractually agreed to waive fees and reimburse expenses to the extent necessary so that the total annual fund operating expenses of Class I, Class A, Class C, Class R4, Class R5 and Class T Shares of certain Funds do not exceed the percentage of average daily net assets as set forth below:

	Total Annual Fund Operating Expenses after Fee Waivers
	Class I		Class A		Class C		Class R4		Class R5		Class T
Balanced Allocation Fund		0.95%		1.24%		1.95%		N/A		N/A	1.45%
International Equity Fund		0.98%		1.28%		1.98%		N/A		N/A	N/A
International Growth Fund		0.85%		1.11%		N/A		N/A		N/A	N/A
Large Cap Core Fund		0.90%		1.18%		1.90%		N/A		N/A	N/A
Large Cap Growth Fund		0.90%		1.20%		1.90%		N/A		N/A	N/A
Large Cap Value Fund		0.90%		1.20%		1.90%		N/A		N/A	N/A
Mid Cap Fund		1.25%		1.51%		2.25%		N/A		N/A	N/A
Mid Cap Index Fund		0.25%		N/A		N/A		0.40%		0.30%	N/A
Multi-Factor Small Cap Core Fund		0.85%		1.15%		N/A		N/A		N/A	N/A
Multi-Factor Small Cap Growth Fund		0.85%		1.15%		1.85%		N/A		N/A	N/A
Multi-Factor Small Cap Value Fund		0.85%		1.15%		1.85%		N/A		N/A	N/A
S&P 500 Index Fund		0.20%		0.45%		1.20%		0.35%		0.25%	N/A
Small Cap Fund		0.99%		1.29%		1.99%		N/A		N/A	N/A
Small Cap Index Fund		0.25%		N/A		N/A		0.40%		0.30%	N/A

The expense limitation agreement for the Funds listed in the table above will apply until at least February 28, 2017, at which time the Adviser will determine whether to renew, revise or discontinue it, except that it may be terminated by the Board at any time. Prior to September 28, 2015, the Adviser limited total operating expenses of PNC Balanced Allocation Fund at 1.29%, 2.00%, 1.00% and 1.50% for Class A, Class C, Class I and Class T Shares, respectively, the total operating expenses of PNC Large Cap Core Fund at 1.22%, 1.94% and 0.94% for Class A, Class C and Class I Shares, respectively, the total operating expenses of PNC Large Cap Growth Fund and PNC Large Cap Value Fund at 1.28%, 1.98% and 0.98% for Class A, Class C and Class I Shares, respectively, the total operating expenses of PNC Mid Cap Fund at 1.53% for Class A Shares and the total operating expenses of PNC Multi-Factor Small Cap Core Fund, PNC Multi-Factor Small Cap Growth Fund and PNC Multi-Factor Small Cap Value Fund at 1.13% for Class A Shares.

261

Fixed Income and Tax Exempt Bond Funds

The following table lists the contractual advisory fees and fee waivers that were in effect during the fiscal year ended May 31, 2016 for the Fixed Income and Tax Exempt Bond Funds.

	Advisory Fees as a Percentage of Average Net Assets
	Annual Rate			Fee   Waiver*			Net   Effective   Annual   Rate	Expense Reimbursement*
Bond Fund		0.40	%		0.08	%	0.32%	N/A
Government Mortgage Fund		0.40	%		0.11	%	0.29%	N/A
High Yield Bond Fund		0.50	%		0.48	%	0.02%	N/A
Intermediate Bond Fund		0.40	%		N/A		0.40%	N/A
Limited Maturity Bond Fund		0.35	%		N/A		0.35%	N/A
Total Return Advantage Fund		0.40	%		0.04	%	0.36%	N/A
Ultra Short Bond Fund		0.20	%		N/A		0.20%	N/A
Intermediate Tax Exempt Bond		0.40	%		0.11	%	0.29%	N/A
Maryland Tax Exempt Bond		0.40	%		0.14	%	0.26%	N/A
Ohio Intermediate Tax Exempt Bond		0.40	%		N/A		0.40%	N/A
Tax Exempt Limited Maturity Bond		0.40	%		0.03	%	0.37%	N/A

* These waivers and reimbursements, which are presented on an annualized basis in the above table, are the result of the contractual expense limitation agreement which will remain in effect through February 28, 2017, except that it may be terminated by the Board at any time. Each Fund may be obligated to pay the Adviser all amounts previously waived or reimbursed by the Adviser pursuant to the expense limitation agreements. For additional detail, see “Expense Recoupment,” below.

The Adviser may, from time to time, waive any portion of its fees and reimburse certain expenses of a Fund. The Adviser contractually agreed to waive fees and reimburse expenses to the extent necessary so that the total annual fund operating expenses of Class I, Class A and Class C Shares of certain Funds do not exceed the percentage of average daily net assets as set forth on the following table:

	Total Annual Fund Operating Expenses after Fee Waivers
	Class I	Class A	Class C
Bond Fund	0.53%	0.81%	1.53%
Government Mortgage Fund	0.65%	0.93%	1.65%
High Yield Bond Fund	0.75%	1.01%	N/A
Total Return Advantage Fund	0.53%	0.81%	1.53%
Intermediate Tax Exempt Bond Fund	0.53%	0.81%	1.53%
Maryland Tax Exempt Bond Fund	0.53%	0.81%	1.53%
Tax Exempt Limited Maturity Bond Fund	0.53%	0.81%	N/A

The expense limitation agreement for the Funds listed in the table above will apply until at least February 28, 2017, at which time the Adviser will determine whether to renew, revise or discontinue it, except that it may be terminated by the Board at any time. Prior to September 28, 2015, PNC Bond Fund, PNC Government Mortgage Fund and PNC Total Return Advantage Fund were not party to an expense limitation agreement.

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Expense Recoupment

Each Fund may be obligated to pay the Adviser all amounts previously waived or reimbursed by the Adviser (“recoupment payments”) pursuant to the expense limitation agreements, provided that the amount of such recoupment payments in any year, together with all other expenses of the Fund or Class, in the aggregate, would not cause the Class’ total annual operating expenses to exceed the amounts set forth in the tables above and provided further that no additional payments by the Fund will be made with respect to amounts paid, waived or reimbursed by the Adviser more than three years after the end of the fiscal year in which the Fund accrues a liability or recognizes a contingent liability with respect to such amounts that are paid, waived or reimbursed by the Adviser.

The following amounts are available for possible recoupment by the Adviser through the expiration dates shown:

	Recoupment Available
	(000)
	2017		2018		2019		Total
Retirement Income Fund		$158		$138		$130		$  426
Target 2020 Fund		100		112		149		361
Target 2030 Fund		111		118		154		383
Target 2040 Fund		101		109		136		346
Target 2050 Fund		114		117		126		357
Balanced Allocation Fund		97		101		224		422
International Equity Fund		697		652		572		1,921
International Growth Fund		-		-		45		45
Large Cap Core Fund		61		75		101		237
Large Cap Growth Fund		84		49		155		288
Large Cap Value Fund		29		24		116		169
Mid Cap Fund		-		44		99		143
Mid Cap Index Fund		35		89		109		233
Multi-Factor Small Cap Core Fund		135		205		467		807
Multi-Factor Small Cap Growth Fund		259		226		389		874
Multi-Factor Small Cap Value Fund		107		142		209		458
S&P 500 Index Fund		103		220		210		533
Small Cap Fund		993		851		866		2,710
Small Cap Index Fund		53		126		169		348
Bond Fund		-		-		84		84
Government Mortgage Fund		-		-		59		59
High Yield Bond Fund		23		48		74		145
Total Return Advantage Fund		-		-		83		83
Intermediate Tax Exempt Bond Fund		53		65		92		210
Maryland Tax Exempt Bond Fund		26		42		68		136
Tax Exempt Limited Maturity Bond Fund		20		30		41		91

Shareholder Services Fees

The Trust maintains a Shareholder Services Plan (the “Services Plan”) with respect to the Class A, Class C and Class R Shares of the Equity, Fixed Income and Tax Exempt Bond Funds. Pursuant to the Services Plan, the Trust enters into shareholder servicing agreements with certain financial institutions, including affiliates of the Adviser, under which they agree to provide shareholder administrative services to their customers who beneficially own Class A, Class C and Class R Shares in consideration for payment of a fee of up to 0.25% on an annual basis, based on each Class’ average daily net assets.

The Trust maintains a Services Plan with respect to the Class R4 and Class R5 Shares of the Mid Cap Index Fund, S&P 500 Index Fund and Small Cap Index Fund. Pursuant to the Services Plan, the Trust enters into shareholder servicing agreements with certain financial institutions, including affiliates of the Adviser, under which they agree to provide shareholder administrative services to their customers who beneficially own Class R4 and Class R5 Shares in consideration for payment of a fee of up to 0.15% and 0.05%, respectively, on an annual basis, based on each Class’ average daily net assets.

263

Trustees’ Fees

For his or her service as a Trustee of the Trust and PNC Advantage Funds (“Advantage”), another registered investment company overseen by the Trustees and for which the Adviser serves as investment adviser, each Trustee, effective January 1, 2016, receives an annual fee of $79,000 plus $7,250 for each Board meeting attended in person, and such amount, up to a maximum of $3,250, as may be determined for each special Board meeting attended, in addition to a reimbursement of all out-of-pocket expenses incurred as a Trustee. The Chairman of the Board receives an additional fee of $25,000 per year and the Chairman of the Audit Committee receives an additional fee of $10,000 per year for their services in these capacities. Prior to January 1, 2016, each Trustee received an annual fee of $76,000 plus $7,250 for each Board meeting attended in person, and such amount, up to a maximum of $3,250, as may be determined for each special Board meeting attended, in addition to a reimbursement of all out-of-pocket expenses incurred as a Trustee. The Chairman of the Board received an additional fee of $25,000 per year and the Chairman of the Audit Committee received an additional fee of $10,000 per year for their services in these capacities. No person who is an officer, director, trustee, or employee of the Adviser, the Underwriter, or any parent or subsidiary thereof, who serves as an officer, trustee, or employee of the Trust or Advantage receives any compensation from the Trust. Fees are paid quarterly in arrears and are allocated to the PNC Funds and PNC Advantage Funds based on their average daily net assets. Trustees who receive fees are eligible for participation in the Trust’s Deferred Compensation Plan (the “Plan”), which is an unfunded, nonqualified deferred compensation plan. The Plan allows each eligible Trustee to defer receipt of all or a percentage of fees that would otherwise be payable for services performed.

Administration Fees

The Trust, BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) and the Adviser are parties to a Co-Administration and Accounting Services Agreement, pursuant to which BNY Mellon and the Adviser serve as Co-Administrators to the Trust. BNY Mellon and the Adviser served as Co-Administrators to the Trust in exchange for fees at the annual rate of 0.05% based on average daily net assets of the Trust’s Funds, excluding the average daily net assets of the Target Date Funds. For their services as Co-Administrators during the fiscal year ended May 31, 2016, approximately 0.0208% was allocated to BNY Mellon and 0.0292% was allocated to the Advisor in aggregate.

For the Target Date Funds, the Adviser receives fees at an annual rate of 0.01% based on the average daily net assets of the Target Date Funds.

BNY Mellon also receives other transaction-based charges from the Trust and is reimbursed for out-of-pocket expenses by the Trust.

Affiliated Investments

The Target Date Funds seek to achieve their investment objectives by investing in a portfolio of securities and other instruments, which may exclusively, primarily or otherwise include PNC Funds (the “Underlying Funds”). The Target Date Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments made by each Target Date Fund within each of its principal investment strategies may represent a significant portion of an Underlying Fund’s net assets. At May 31, 2016, no investments by a Target Date Fund represented a significant portion of the net assets of any of the Underlying Funds.

The common stock of PNC Group, an affiliate of the Adviser to the Trust, is included in the S&P 500^® Index. Also included in the S&P 500^® Index is BlackRock, Inc., a company in which PNC Group owns a minority interest. Like the other stocks in the S&P 500^® Index, S&P 500 Index Fund may invest in the common stocks of PNC Group and BlackRock, Inc. in approximately the same proportions as the percentages those common stocks represent in the S&P 500^® Index. iShares securities may be deemed to be affiliated investments through the Adviser’s affiliation with BlackRock, Inc.

For the purposes of these financial statements, dividends received from such investments are reported as “Dividends from affiliated investments” in the Statements of Operations. Gains and/or losses from the sale of affiliated investments are reported as “Net realized gain (loss) on affiliated investments sold” on the Statements of Operations.

Pursuant to SEC rules, the Funds may invest cash balances not otherwise invested in portfolio securities and cash collateral from securities lending programs to purchase shares of the money market funds offered by PNC Funds, Advantage, a separate investment company affiliated with PNC Funds, or BlackRock Funds and other investment companies that could be deemed to be affiliated with the Adviser. The Funds will bear the costs and fees associated with investments in other investment companies, including other investment companies managed by the Adviser or its affiliates, except that the Adviser has agreed to waive its advisory fee in an amount equal to the advisory fees paid to the Adviser by a Fund with respect to a Fund’s short-term reserves swept into Advantage. Certain other contractual and voluntary advisory fee waivers may reduce the Adviser’s obligation to waive its advisory fees in connection with such investments. This waiver does not apply to cash collateral from a Fund’s securities lending program invested in a PNC Advantage money market fund, and the waiver may be terminated at any time without prior notice.

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For the purposes of these financial statements, dividends received from such investments are reported as “Dividends from affiliated investments” in the Statements of Operations.

The total value at May 31, 2015 and May 31, 2016, and the purchases, sales proceeds, distributions and realized gain (loss) on affiliated holdings for the fiscal year ended May 31, 2016 are shown in the following table.

	Value of Affiliated Investments at 05/31/15 (000)			Value of Affiliated Investments at 05/31/16 (000)			Purchases (000)			Sales Proceeds (000)				Income Distributions from Affiliated Investments (000)				Capital Gain Distributions from Affiliated Investments (000)				Realized     Gain (Loss) on Affiliated     Investments Sold     (000)
Retirement Income Fund
iShares Select Dividend ETF		$	53		$	56		$	63		$	65			$	2			$	–			$	1
iShares MSCI EAFE Small-Cap ETF			6			8			8			6				–	*			–				–	*
PNC Government Money Market Fund			–			515			515			–	*			–	*			–				–
PNC Advantage Institutional Money Market Fund			276			–			3,965			4,241				–	*			–				–
PNC International Equity Fund			133			189			196			140				2				–				3
PNC Large Cap Growth Fund			156			221			225			162				1				–				2
PNC Large Cap Value Fund			159			224			224			164				3				–				2
PNC Multi-Factor Small Cap Core Fund			–			60			93			34				–	*			–	*			(1)
PNC S&P 500 Fund			80			113			116			87				1				1				(1)
PNC Small Cap Fund			84			59			62			90				–	*			–	*			8
PNC Bond Fund			581			819			821			586				12				5				(5)
PNC High Yield Bond Fund			66			95			96			67				4				–	*			(3)
PNC Limited Maturity Bond Fund			585			808			816			592				4				–				–	*
		$	2,179		$	3,167		$	7,200		$	6,234			$	29			$	6			$	6
Target 2020 Fund
iShares Select Dividend ETF		$	76		$	146		$	116		$	58			$	4			$	–			$	(2)
iShares MSCI EAFE Small-Cap ETF			11			25			21			8				–	*			–				–	*
PNC Government Money Market Fund			–			648			648			–	*			–	*			–				–
PNC Advantage Institutional Money Market Fund			203			–			7,347			7,550				–	*			–				–
PNC International Equity Fund			290			625			543			191				8				–				(20)
PNC Large Cap Growth Fund			284			648			551			187				1				–				(9)
PNC Large Cap Value Fund			289			658			538			175				6				–				(9)
PNC Multi-Factor Small Cap Core Fund			–			168			212			45				–	*			–	*			(4)
PNC S&P 500 Fund			146			333			276			98				4				3				(6)
PNC Small Cap Fund			147			167			147			128				–	*			1				2
PNC Bond Fund			811			1,852			1,493			455				28				14				(14)
PNC High Yield Bond Fund			108			257			211			60				10				1				(9)
PNC Limited Maturity Bond Fund			408			1,084			908			233				6				–				–	*
		$	2,773		$	6,611		$	13,011		$	9,188			$	67			$	19			$	(71)
Target 2030 Fund
iShares Select Dividend ETF		$	122		$	224		$	133		$	48			$	6			$	–			$	(3)
iShares MSCI EAFE Small-Cap ETF			42			68			47			23				1				–				(1)
PNC Government Money Market Fund			–			457			458			1				–	*			–				–
PNC Advantage Institutional Money Market Fund			200			–			5,877			6,077				–	*			–				–
PNC International Equity Fund			496			1,077			700			86				14				–				(9)
PNC Large Cap Growth Fund			485			1,047			658			93				5				–				(3)
PNC Large Cap Value Fund			493			1,064			652			89				10				–				(3)
PNC Multi-Factor Small Cap Core Fund			–			271			293			23				–	*			–	*			(1)
PNC S&P 500 Fund			248			538			347			69				6				5				(2)
PNC Small Cap Fund			249			269			191			171				–	*			2				10
PNC Bond Fund			713			1,640			1,101			174				24				13				(6)
PNC High Yield Bond Fund			115			258			172			24				10				1				(3)
PNC Limited Maturity Bond Fund			60			220			176			17				1				–				–	*
		$	3,223		$	7,133		$	10,805		$	6,895			$	77			$	21			$	(21)

265

	Value of Affiliated Investments at 05/31/15 (000)			Value of Affiliated Investments at 05/31/16 (000)			Purchases (000)			Sales Proceeds (000)			Income Distributions from Affiliated Investments (000)				Capital Gain Distributions from Affiliated Investments (000)				Realized     Gain (Loss) on Affiliated     Investments Sold     (000)
Target 2040 Fund
iShares Select Dividend ETF		$	82		$	106		$	43		$	26		$	3			$	–			$	(2)
iShares MSCI EAFE Small-Cap ETF			32			42			19			9			1				–				–*
PNC Government Money Market Fund			–			173			175			2			–	*			–				–
PNC Advantage Institutional Money Market Fund			93			–			1,785			1,878			–	*			–				–
PNC International Equity Fund			359			483			246			92			8				–				(1)
PNC Large Cap Growth Fund			356			478			219			87			3				–				(1)
PNC Large Cap Value Fund			361			485			221			93			5				–				(1)
PNC Multi-Factor Small Cap Core Fund			–			125			135			8			–	*			–	*			(1)
PNC S&P 500 Fund			182			246			109			45			4				3				(1)
PNC Small Cap Fund			183			124			59			116			–	*			1				19
PNC Bond Fund			224			322			182			82			5				3				(3)
PNC High Yield Bond Fund			36			54			32			12			2				–	*			(1)
		$	1,908		$	2,638		$	3,225		$	2,450		$	31			$	7			$	8
Target 2050 Fund
iShares Select Dividend ETF		$	64		$	42		$	21		$	46		$	1			$	–			$	6
iShares MSCI EAFE Small-Cap ETF			25			15			10			20			–	*			–				4
PNC Government Money Market Fund			–			43			67			24			–				–				–
PNC Advantage Institutional Money Market Fund			61			–			708			769			–	*			–				–
PNC International Equity Fund			279			188			105			187			2				–				39
PNC Large Cap Growth Fund			273			188			103			184			1				–				8
PNC Large Cap Value Fund			278			188			100			189			2				–				5
PNC Multi-Factor Small Cap Core Fund			–			49			51			2			–	*			–	*			–*
PNC S&P 500 Fund			140			94			45			91			1				1				1
PNC Small Cap Fund			143			50			28			123			–	*			–	*			39
PNC Bond Fund			93			69			42			66			1				1				(3)
PNC High Yield Bond Fund			17			11			6			12			–	*			–	*			(1)
		$	1,373		$	937		$	1,286		$	1,713		$	8			$	2			$	98

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	Value of Affiliated Investments   at 05/31/15 (000)			Value of Affiliated Investments   at 05/31/16 (000)			Purchases (000)			Sales Proceeds (000)			Income Distributions from Affiliated Investments (000)				Realized Gain (Loss)        on Affiliated        Investments Sold         (000)
Balanced Allocation Fund
iShares MSCI EAFE Growth ETF		$	–		$	–		$	602		$	586		$	–			$	(16	)
iShares MSCI EAFE Value ETF			4,798			4,592			1,140			493			157				(361	)
iShares MSCI Emerging Markets ETF			2,015			1,408			–			250			36				(31	)
iShares STOXX Europe 600 Banks UCITS ETF (DE)			63			–			4			46			1				(18	)
iShares TIPS Bond ETF			–			616			595			–			–				–
PNC Government Money Market Fund			–			1,379			1,751			372			–	*			–
PNC Advantage Institutional Money Market Fund			4,949			–			14,587			19,536			2				–
		$	11,825		$	7,995		$	18,679		$	21,283		$	196			$	(426	)
International Equity Fund
iShares STOXX Europe 600 Banks UCITS ETF (DE)		$	3,694		$	–		$	967		$	3,193		$	71			$	(1,429	)
PNC Government Money Market Fund			–			95,914			108,633			12,719			2				–
PNC Advantage Institutional Money Market Fund			79,452			–			266,066			345,518			42				–
		$	83,146		$	95,914		$	375,666		$	361,430		$	115			$	(1,429	)
International Growth Fund
iShares MSCI Germany ETF		$	–		$	24		$	22		$	1		$	–			$	–	*
iShares MSCI United Kingdom ETF			–			–			49			52			–				4
PNC Government Money Market Fund			–			209			239			30			–	*			–
PNC Advantage Institutional Money Market Fund			–			–			3,181			3,181			–	*			–
		$	–		$	233		$	3,491		$	3,264		$	–	*		$	4
Large Cap Core Fund
PNC Government Money Market Fund		$	–		$	627		$	999		$	372		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			1,212			–			9,421			10,633			–	*			–
		$	1,212		$	627		$	10,420		$	11,005		$	–	*		$	–
Large Cap Growth Fund
iShares Russell 1000 Growth ETF		$	–		$	504		$	503		$	–		$	–			$	–
PNC Government Money Market Fund			–			3,319			3,597			278			–	*			–
PNC Advantage Institutional Money Market Fund			1,130			–			25,083			26,213			1				–
		$	1,130		$	3,823		$	29,183		$	26,491		$	1			$	–
Large Cap Value Fund
iShares Russell 1000 Value ETF		$	1,579		$	1,280		$	2,263		$	2,538		$	33			$	(6	)
PNC Government Money Market Fund			–			914			1,397			483			–	*			–
PNC Advantage Institutional Money Market Fund			354			–			36,267			36,621			1				–
		$	1,933		$	2,194		$	39,927		$	39,642		$	34			$	(6	)
Mid Cap Fund
PNC Government Money Market Fund		$	–		$	929		$	956		$	27		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			663			–			1,851			2,514			–	*			–
		$	663		$	929		$	2,807		$	2,541		$	–	*		$	–
Mid Cap Index Fund
PNC Government Money Market Fund		$	–		$	91		$	217		$	126		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			22			–			2,882			2,904			–	*			–
		$	22		$	91		$	3,099		$	3,030		$	–	*		$	–
Multi-Factor Small Cap Core Fund
iShares Russell 2000 ETF		$	–		$	–		$	3,953		$	3,884		$	–			$	(69	)
PNC Government Money Market Fund			–			7,545			13,731			6,186			–	*			–
PNC Advantage Institutional Money Market Fund			4,540			–			82,300			86,840			3				–
		$	4,540		$	7,545		$	99,984		$	96,910		$	3			$	(69	)

267

	Value of Affiliated Investments   at 05/31/15 (000)			Value of Affiliated Investments   at 05/31/16 (000)			Purchases (000)			Sales Proceeds (000)			Income Distributions from Affiliated Investments (000)				Realized Gain (Loss)        on Affiliated        Investments Sold         (000)
Multi-Factor Small Cap Growth Fund
iShares Russell 2000 ETF		$	–		$	–		$	1,683		$	1,681		$	–			$	(1	)
PNC Government Money Market Fund			–			4,569			4,788			219			–	*			–
PNC Advantage Institutional Money Market Fund			1,777			–			48,950			50,727			2				–
		$	1,777		$	4,569		$	55,421		$	52,627		$	2			$	(1	)
Multi-Factor Small Cap Value Fund
iShares Russell 2000 ETF		$	–		$	–		$	747		$	708		$	3			$	(39	)
PNC Government Money Market Fund			–			2,911			2,997			86			–	*			–
PNC Advantage Institutional Money Market Fund			2,063			–			6,736			8,799			–	*			–
		$	2,063		$	2,911		$	10,480		$	9,593		$	3			$	(39	)
S&P 500 Index Fund
BlackRock		$	490		$	488		$	–		$	–		$	12			$	–
PNC Government Money Market Fund			–			2,539			4,115			1,576			–	*			–
PNC Advantage Institutional Money Market Fund			4,243			–			18,269			22,512			1				–
PNC Financial Services Group			550			516			–			–			12				–
		$	5,283		$	3,543		$	22,384		$	24,088		$	25			$	–
Small Cap Fund
PNC Government Money Market Fund		$	–		$	101,738		$	122,483		$	20,745		$	2			$	–
PNC Advantage Institutional Money Market Fund			61,408			–			516,298			577,706			24				–
		$	61,408		$	101,738		$	638,781		$	598,451		$	26			$	–
Small Cap Index Fund
iShares Russell 2000 ETF		$	89		$	198		$	190		$	89		$	–	*		$	–	*
PNC Government Money Market Fund			–			69			230			161			–	*			–
PNC Advantage Institutional Money Market Fund			273			–			6,242			6,515			–	*			–
		$	362		$	267		$	6,662		$	6,765		$	–	*		$	–	*
Bond Fund
PNC Government Money Market Fund		$	–		$	1,665		$	2,474		$	809		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			1,919			–			30,478			32,397			2				–
		$	1,919		$	1,665		$	32,952		$	33,206		$	2			$	–
Government Mortgage Fund
PNC Government Money Market Fund		$	–		$	769		$	1,849		$	1,080		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			1,992			–			12,629			14,621			1				–
		$	1,992		$	769		$	14,478		$	15,701		$	1			$	–
High Yield Bond Fund
PNC Government Money Market Fund		$	–		$	207		$	1,507		$	1,300		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			1,681			–			10,603			12,284			1				–
		$	1,681		$	207		$	12,110		$	13,584		$	1			$	–
Intermediate Bond Fund
PNC Government Money Market Fund		$	–		$	7,683		$	8,059		$	376		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			7,021			–			57,326			64,347			4				–
		$	7,021		$	7,683		$	65,385		$	64,723		$	4			$	–
Limited Maturity Bond Fund
PNC Government Money Market Fund		$	–		$	2,872		$	9,498		$	6,626		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			3,599			–			129,795			133,394			6				–
		$	3,599		$	2,872		$	139,293		$	140,020		$	6			$	–

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	Value of Affiliated Investments at 05/31/15 (000)			Value of Affiliated   Investments   at 05/31/16 (000)			Purchases (000)			Sales Proceeds (000)			Income Distributions from Affiliated Investments (000)				Realized Gain (Loss)        on Affiliated        Investments Sold         (000)
Total Return Advantage Fund
PNC Government Money Market Fund		$	–		$	4,716		$	6,395		$	1,679		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			3,752			–			37,424			41,176			3				–
		$	3,752		$	4,716		$	43,819		$	42,855		$	3			$	–
Ultra Short Bond Fund
PNC Government Money Market Fund		$	–		$	2,897		$	12,486		$	9,589		$	–	*		$	–
PNC Advantage Institutional Money Market Fund			5,652			–			248,414			254,066			8				–
		$	5,652		$	2,897		$	260,900		$	263,655		$	8			$	–

*Amount represents less than $500.

4. Custodian, Distribution/12b-1 Fees and Transfer Agent Fees

Custodian Fees

The Bank of New York Mellon, an affiliate of BNY Mellon (one of the Trust’s Co-Administrators), serves as the Trust’s Custodian. The Bank of New York Mellon also serves as Custodian for Advantage. The Custodian fees for the Trust (excluding the Target Date Funds) and Advantage are calculated at the following annual rate: 0.0025% of the first $5 billion of the combined average daily gross assets of the Trust (excluding the Target Date Funds) and Advantage, 0.002% of the next $5 billion of the combined average daily gross assets of the Trust (excluding the Target Date Funds) and Advantage and 0.001% of the combined average daily gross assets of the Trust (excluding the Target Date Funds) and Advantage in excess of $10 billion. The Custodian fees are allocated to the Trust (excluding the Target Date Funds) and Advantage based on each Fund’s relative average daily net assets. The Bank of New York Mellon also receives other transaction-based charges from the Trust and is reimbursed for out-of-pocket expenses by the Trust.

For the Target Date Funds, The Bank of New York Mellon receives a base fee in addition to other transaction-based charges from the Trust and is reimbursed for out-of-pocket expenses by the Trust.

Distribution/12b-1 Fees

For its services to the Trust, the Underwriter, a wholly owned subsidiary of Foreside Financial Group, LLC, receives an annual fee payable directly by the Adviser.

Pursuant to Rule 12b-1 under the 1940 Act (“Rule 12b-1”), the Trust has adopted a distribution plan for Class A Shares (the “A Shares Plan”), a distribution plan for Class C Shares (the “C Shares Plan”), and a distribution plan for Class T Shares (the “T Shares Plan”), which permit the Funds to bear certain expenses in connection with the distribution of Class A Shares, Class C Shares, and Class T Shares, respectively. Payments to the Underwriter under the plans may be used to pay for any eligible distribution or marketing expense or shareholder services, including to reimburse the Adviser for certain up-front payments and/or finder’s fees paid by the Adviser to financial intermediaries in connection with the sale of shares of the Funds.

Pursuant to the A Shares Plan, the Funds reimburse the Underwriter for direct and indirect costs and expenses incurred in connection with advertising, marketing and other distribution services in an amount not to exceed 0.10% per annum of the average daily net assets of the Funds’ Class A Shares. The Board renewed a commitment whereby actual distribution fees for Class A Shares will be no more than the Distribution (12b-1) fees stated in the table below for Class A Shares of each Fund. This commitment, which may be terminated by the Board at any time, continues through February 28, 2017, at which time the Board will consider whether to renew, revise or discontinue it.

Pursuant to the C Shares Plan, the Funds compensate the Underwriter for direct and indirect costs and expenses incurred in connection with advertising, marketing and other distribution services in an amount up to 0.75% per annum of the average daily net assets of the Funds’ Class C Shares. During low yield environments, a portion of these fees may be voluntarily waived in order to maintain a minimum yield for the Fund class.

The T Shares Plan provides that the Funds may compensate the Underwriter from Class T Share assets for distribution of Class T Shares in an amount not to exceed 0.50% per annum of the average daily net assets of the Funds’ Class T Shares. Under the T Shares Plan, the Funds may incur expenses primarily intended to result in the sale of their shares or associated with the provision of services to shareholders of Class T Shares.

269

For the fiscal year ended May 31, 2016, the 12b-1 fee accrual rates were as shown in the following table:

	Class A			Annual Rate Class C			Class T
Retirement Income Fund		N/A			N/A		0.500%
Target 2020 Fund		N/A			N/A		0.500%
Target 2030 Fund		N/A			N/A		0.500%
Target 2040 Fund		N/A			N/A		0.500%
Target 2050 Fund		N/A			N/A		0.500%
Balanced Allocation Fund		0.040	%		0.750	%	0.500%
International Equity Fund		0.050	%		0.750	%	N/A
International Growth Fund		0.010	%		N/A		N/A
Large Cap Core Fund		0.030	%		0.750	%	N/A
Large Cap Growth Fund		0.050	%		0.750	%	N/A
Large Cap Value Fund		0.050	%		0.750	%	N/A
Mid Cap Fund		0.010	%*		0.750	%	N/A
Multi-Factor Small Cap Core Fund		0.050	%**		N/A		N/A
Multi-Factor Small Cap Growth Fund		0.050	%**		0.750	%	N/A
Multi-Factor Small Cap Value Fund		0.050	%**		0.750	%	N/A
S&P 500 Index Fund		0.000	%		0.750	%	N/A
Small Cap Fund		0.050	%		0.750	%	N/A
Bond Fund		0.030	%		0.750	%	N/A
Government Mortgage Fund		0.030	%		0.750	%	N/A
High Yield Bond Fund		0.010	%		N/A		N/A
Intermediate Bond Fund		0.030	%		0.750	%	N/A
Limited Maturity Bond Fund		0.030	%		0.750	%***	N/A
Total Return Advantage Fund		0.030	%		0.750	%	N/A
Ultra Short Bond Fund		0.030	%***		N/A		N/A
Intermediate Tax Exempt Bond Fund		0.030	%		0.750	%	N/A
Maryland Tax Exempt Bond Fund		0.030	%		0.750	%	N/A
Ohio Intermediate Tax Exempt Bond Fund		0.030	%		0.750	%	N/A
Tax Exempt Limited Maturity Bond Fund		0.030	%		N/A		N/A

* The Board approved a reduction in 12b-1 fees to 0.010% for the Class A Shares of the Mid Cap Fund effective September 28, 2015. Prior to the   reduction, the fee rate was 0.030%.

** The Board approved an increase in 12b-1 fees to 0.050% for the Class A Shares of the Multi-Factor Small Cap Core Fund, Multi-Factor Small Cap Growth Fund and Multi-Factor Small Cap Value Fund effective September 28, 2015. Prior to the increase, the fee rate was 0.030% for each.

*** The Underwriter voluntarily agreed to waive 12b-1 fees, as applicable, and the Adviser agreed to reimburse shareholder services fees, as applicable during the period, to the extent necessary to maintain a minimum net distribution yield of at least 0.01% for the Class C Shares of the Limited Maturity Bond Fund and the Class A Shares of the Ultra Short Bond Fund.

Transfer Agent

BNY Mellon serves as Transfer Agent for the Funds. For its services as Transfer Agent, BNY Mellon receives a fee based primarily upon the number of accounts serviced. Certain minimum fees and transaction charges may apply.

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5. Investments

During the fiscal year ended May 31, 2016, the cost of purchases and proceeds from sales of investments, maturities and paydowns, other than short-term investments, were:

	Cost of Purchases and Proceeds from Sales, Maturities and Paydowns of Long-Term Securities (other than U.S. Government Obligations)				Cost of Purchases and Proceeds from Sales, Maturities and Paydowns of Long-Term U.S. Government Obligations
	Purchases		Sales		Purchases		Sales
	(000)		(000)		(000)		(000)
Retirement Income Fund		$    3,305		$    2,494		$         –		$         –
Target 2020 Fund		6,466		2,181		–		–
Target 2030 Fund		5,772		1,131		–		–
Target 2040 Fund		1,588		705		–		–
Target 2050 Fund		656		1,180		–		–
Balanced Allocation Fund		27,840		29,753		10,132		6,310
International Equity Fund		320,620		121,934		–		–
International Growth Fund		3,083		240		–		–
Large Cap Core Fund		17,337		14,902		–		–
Large Cap Growth Fund		76,255		75,114		–		–
Large Cap Value Fund		85,486		84,872		–		–
Mid Cap Fund		1,238		2,466		–		–
Mid Cap Index Fund		4,222		3,860		–		–
Multi-Factor Small Cap Core Fund		177,801		107,015		–		–
Multi-Factor Small Cap Growth Fund		95,960		43,303		–		–
Multi-Factor Small Cap Value Fund		28,058		30,499		–		–
S&P 500 Index Fund		11,898		43,794		–		–
Small Cap Fund		610,435		119,349		–		–
Small Cap Index Fund		6,246		2,080		–		–
Bond Fund		26,685		69,544		76,999		75,337
Government Mortgage Fund		4,584		12,505		2,539		1,619
High Yield Bond Fund		6,483		9,761		110		112
Intermediate Bond Fund		102,976		96,576		161,714		188,064
Limited Maturity Bond Fund		104,438		113,680		117,041		140,679
Total Return Advantage Fund		42,087		52,427		61,769		34,687
Ultra Short Bond Fund		155,464		159,233		171,616		196,945
Intermediate Tax Exempt Bond		17,371		17,086		–		–
Maryland Tax Exempt Bond		8,575		11,416		–		–
Ohio Intermediate Tax Exempt Bond		9,136		14,111		–		–
Tax Exempt Limited Maturity Bond		37,630		37,698		–		–

6. Federal Income Taxes

Each Fund is classified as a separate taxable entity for Federal income tax purposes and intends to continue to qualify as a separate “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required.

Each Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as an expense during the current year. A tax position that does meet the more-likely-than-not threshold shall be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with the relevant taxing authority. Management has analyzed each Fund’s tax positions through the fiscal year ended May 31, 2016 and for each Fund’s open tax years (years ended May 31, 2013 through May 31, 2015), with the exception of the Mid Cap Index Fund and the Small Cap Index Fund which commenced operations on December 30, 2013 and the International Growth Fund which commenced operations on February 29, 2016, and has concluded that no provision for income tax is required in each Fund’s financial statements.

271

The tax character of dividends and distributions paid during the fiscal years ended May 31, 2016 and May 31, 2015 are shown in the following table.

	Tax-Exempt Income (000)			Ordinary Income (000)			Long-Term Capital Gain (000)			Total (000)
Retirement Income Fund
2016		$	–		$	35		$	57		$	92
2015			–			194			–			194
Target 2020 Fund
2016			–			90			72			162
2015			–			18			6			24
Target 2030 Fund
2016			–			102			136			238
2015			–			27			–			27
Target 2040 Fund
2016			–			68			143			211
2015			–			18			–			18
Target 2050 Fund
2016			–			29			242			271
2015			–			19			–			19
Balanced Allocation Fund
2016			–			984			2,797			3,781
2015			–			963			–			963
International Equity Fund
2016			–			14,074			–			14,074
2015			–			8,311			–			8,311
Large Cap Core Fund
2016			–			295			–			295
2015			–			208			–			208
Large Cap Growth Fund
2016			–			555			–			555
2015			–			245			–			245
Large Cap Value Fund
2016			–			1,728			–			1,728
2015			–			1,085			–			1,085

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	Tax-Exempt Income (000)			Ordinary Income (000)			Long-Term Capital Gain (000)			Total (000)
Mid Cap Index Fund
2016		$	–		$	64		$	59		$123
2015			–			110			1		111
Multi-Factor Small Cap Core Fund
2016			–			183			122		305
2015			–			111			–		111
Multi-Factor Small Cap Growth Fund
2016			–			–			1,643		1,643
2015			–			–			1,241		1,241
Multi-Factor Small Cap Value Fund
2016			–			496			–		496
2015			–			207			–		207
S&P 500 Index Fund
2016			–			3,501			2,270		5,771
2015			–			3,440			1,531		4,971
Small Cap Fund
2016			–			992			8,625		9,617
2015			–			318			10,583		10,901
Small Cap Index Fund
2016			–			96			109		205
2015			–			160			–		160
Bond Fund
2016			–			2,688			517		3,205
2015			–			3,378			161		3,539
Government Mortgage Fund
2016			–			1,341			–		1,341
2015			–			1,650			–		1,650
High Yield Bond Fund
2016			–			927			102		1,029
2015			–			1,692			–		1,692
Intermediate Bond Fund
2016			–			4,995			665		5,660
2015			–			4,695			716		5,411
Limited Maturity Bond Fund
2016			–			2,202			–		2,202
2015			–			1,779			–		1,779
Total Return Advantage Fund
2016			–			4,732			–		4,732
2015			–			5,068			–		5,068
Ultra Short Bond Fund
2016			–			1,783			–		1,783
2015			–			1,512			–		1,512

273

	Tax-Exempt Income (000)		Ordinary Income (000)		Long-Term Capital Gain (000)		Total     (000)
Intermediate Tax Exempt Bond Fund
2016		$2,032		$–		$   248		$  2,280
2015		2,106		–		2,373		4,479
Maryland Tax Exempt Bond Fund
2016		1,217		–		119		1,336
2015		1,393		–		344		1,737
Ohio Intermediate Tax Exempt Bond Fund
2016		1,027		–		536		1,563
2015		1,468		–		748		2,216
Tax Exempt Limited Maturity Bond Fund
2016		1,975		–		–		1,975
2015		2,094		–		–		2,094

As of May 31, 2016, the components of total net assets on a tax basis were as follows:

	Paid- in Capital (000)			Undistributed Ordinary Income (000)			Undistributed Long-Term Capital Gains (000)			Capital Loss Carryforward (000)				Late-Year Losses Deferred (000)				Unrealized Appreciation (Depreciation) (000)				Other Temporary Differences (000)				Total Net     Assets     (000)
Retirement Income Fund		$	3,569		$	5		$	5		$	–			$	–			$	114			$	–	*		$	3,693
Target 2020 Fund			8,122			36			–			–				(49	)			201				–	*			8,310
Target 2030 Fund			8,732			23			–			–				(22	)			271				–	*			9,004
Target 2040 Fund			3,154			1			10			–				–				133				–	*			3,298
Target 2050 Fund			1,084			2			13			–				–				67				–	*			1,166
Balanced Allocation Fund			55,759			121			–			–				(84	)			3,353				(10	)			59,139
International Equity Fund			805,676			7,953			–			(34,302	)			(12,192	)			39,243				(77	)			806,301
International Growth Fund			3,020			24			–			–				–				251				–	*			3,295
Large Cap Core Fund			52,260			60			–			(26,538	)			–				2,472				(4	)			28,250
Large Cap Growth Fund			109,898			324			–			(18,121	)			(2,880	)			7,908				(12	)			97,117
Large Cap Value Fund			179,373			318			–			(72,826	)			(2,226	)			8,837				(20	)			113,456
Mid Cap Fund			71,079			–			–			(63,054	)			(18	)			1,195				(6	)			9,196
Mid Cap Index Fund			5,026			21			–			–				(6	)			275				–	*			5,316
Multi-Factor Small Cap Core Fund			175,259			454			–			(1,154	)			(4,379	)			13,716				(10	)			183,886
Multi-Factor Small Cap Growth Fund			85,692			–			–			(449	)			(335	)			8,944				(6	)			93,846
Multi-Factor Small Cap Value Fund			74,830			719			–			(48,484	)			(1,310	)			592				(4	)			26,343
S&P 500 Index Fund			83,076			513			2,479			–				(497	)			85,409				(23	)			170,957
Small Cap Fund			1,003,488			–			–			(2,904	)			(12,938	)			152,116				(66	)			1,139,696
Small Cap Index Fund			9,745			34			–			–				(185	)			(200	)			(1	)			9,393

    * Amount represents less than $500.

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	Paid- in Capital (000)			Un-  distributed  Ordinary  Income  (000)				Un-  distributed  Tax-Exempt  Income  (000)				Un-  distributed  Long-Term  Capital Gains  (000)			Capital  Loss  Carry-  forward  (000)				Late-Year  Losses  Deferred  (000)				Unrealized  Appreciation  (Depreciation)  (000)				Other  Temporary  Differences  (000)				Total     Net     Assets     (000)
Bond Fund		$	84,750		$	(4	)		$	–			$	–		$	–			$	(548	)		$	2,152			$	(25	)		$	86,325
Government Mortgage Fund			51,785			(4	)			–				–			(360	)			(147	)			1,346				(12	)			52,608
High Yield Bond Fund			15,826			2				–				–			(346	)			(1,886	)			(86	)			(31	)			13,479
Intermediate Bond Fund			293,768			3				–				–			–				(1,636	)			3,018				(52	)			295,101
Limited Maturity Bond Fund			292,956			(25	)			–				40			–				–				525				(46	)			293,450
Total Return Advantage Fund			184,153			55				–				–			(2,872	)			(2,429	)			2,564				(33	)			181,438
Ultra Short Bond Fund			381,709			25				–				–			(5,590	)			(109	)			211				(61	)			376,185
Intermediate Tax Exempt Bond Fund			77,376			–				162				283			–				–				4,720				(15	)			82,526
Maryland Tax Exempt Bond Fund			44,093			–				4				431			–				–				2,081				(8	)			46,601
Ohio Intermediate Tax Exempt Bond Fund			41,312			–				(58	)			735			–				–				2,538				(10	)			44,517
Tax Exempt Limited Maturity Bond Fund			129,730			–				(1	)			–			(88	)			–				2,394				(19	)			132,016

    * Amount represents less than $500.

The amount of dividends from net investment income and distributions from net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under U.S. GAAP. These book/tax differences are either temporary or permanent in nature and are attributable primarily to differences in the book/tax treatment of deferred compensation, investments in partnerships, investments in royalty trusts, investments in Passive Foreign Investment Companies (“PFICs”), wash sales, market discount, paydowns, foreign currency transactions, futures, foreign currency translation and the expiration of capital loss carryforwards.

The character and timing of dividends and/or distributions made during the year from net investment income and/or net realized capital gains may differ from the year that the income or realized capital gains (losses) were recorded by the Target Date, Equity, Fixed Income and Tax Exempt Bond Funds. To the extent any of these differences are permanent, adjustments are made to the appropriate components of net assets in the period that the differences arise. Accordingly, the following permanent differences have been reclassified to/from the following accounts for the the fiscal year ended May 31, 2016:

	Undistributed (Distributions in Excess of) Net Investment Income (000)				Accumulated Net Realized Gains (Losses) (000)				Paid-in      Capital      (000)
Retirement Income Fund		$	1			$	(1	)		$	–
Target 2020 Fund			2				(2	)			–
Target 2030 Fund			(11	)			11				–
Target 2040 Fund			(9	)			9				–
Target 2050 Fund			(2	)			2				–
Balanced Allocation Fund			78				(78	)			–
International Equity Fund			1,762				(1,762	)			–
International Growth Fund			–	*			–	*			–
Large Cap Growth Fund			–	*			–	*			–	*
Mid Cap Fund			81				–				(81	)
Mid Cap Index Fund			–	*			–	*			–
Multi-Factor Small Cap Core Fund			32				(32	)			–
Multi-Factor Small Cap Growth Fund			132				(59	)			(73	)
Multi-Factor Small Cap Value Fund			97				(97	)			–
S&P 500 Index Fund			(68	)			(190	)			258
Small Cap Fund			1,234				–	*			(1,234	)
Small Cap Index Fund			–	*			–	*			–

275

	Undistributed (Distributions in Excess of) Net Investment Income (000)			Accumulated Net Realized Gains (Losses) (000)			Paid-in      Capital      (000)
Bond Fund		175			(351	)		176
Government Mortgage Fund		333			(333	)		–
High Yield Bond Fund		2			(134	)		132
Intermediate Bond Fund		20			(175	)		155
Limited Maturity Bond Fund		225			(225	)		–*
Total Return Advantage Fund		370			(370	)		–
Ultra Short Bond Fund		301			(301	)		–
Maryland Tax Exempt Bond Fund		–	*		–	*		–
Ohio Intermediate Tax Exempt Bond Fund		(2	)		(133	)		135
*Amount represents less than $500.

For Federal income tax purposes, realized capital losses may be carried forward and applied against future realized capital gains. During the fiscal year ended May 31, 2016, capital loss carryforwards that were utilized to offset capital gains were as follows:

Fund	(000)
Large Cap Core Fund	$	1,692
Large Cap Growth Fund		9,355
Large Cap Value Fund		7,391
Mid Cap Fund		256
Multi-Factor Small Cap Growth Fund		449
Multi-Factor Small Cap Value Fund		1,184
Limited Maturity Bond Fund		224
Maryland Tax Exempt Bond Fund		64
Tax Exempt Limited Maturity Bond Fund		193

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 At May 31, 2016, the Funds had capital loss carryforwards (in thousands) available to offset future realized capital gains through the indicated expiration dates:

	Expiring May 31,
	2017		2018		2019		Indefinite		Total
International Equity Fund(1)	$	9,532	$	5,673	$	–		$19,097	$	34,302
Large Cap Core Fund		–		26,538		–		–		26,538
Large Cap Growth Fund		–		18,121		–		–		18,121
Large Cap Value Fund		28,676		44,150		–		–		72,826
Mid Cap Fund		40,981		20,694		–		1,379		63,054
Multi-Factor Small Cap Core Fund		–		–		–		1,154		1,154
Multi-Factor Small Cap Growth Fund(2)		449		–		–		–		449
Multi-Factor Small Cap Value Fund		24,156		24,328		–		–		48,484
Small Cap Fund(1)		2,471		–		–		433		2,904
Government Mortgage Fund		–		61		–		299		360
High Yield Bond Fund		–		–		–		346		346
Total Return Advantage Fund		–		2,173		–		699		2,872
Ultra Short Bond Fund		–		–		1,002		4,588		5,590
Tax Exempt Limited Maturity Bond Fund		–		–		–		87		87

⁽¹⁾  The amount of this loss which can be utilized in subsequent years is subject to an annual limitation due to the Fund’s merger with its respective PNC Fund on February 1, 2010.

⁽²⁾  The amount of this loss which can be utilized in subsequent years is subject to an annual limitation due to the Fund’s merger with the Allegiant Multi-Factor Mid Cap Growth Fund on July 24, 2009.

Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), net capital losses incurred after May 31, 2011 may be carried forward indefinitely with their character retained as short term or long term. Net capital losses incurred prior to May 31, 2011 may be carried forward for eight years and are treated as short term capital losses in the year to which they were carried. However, the Modernization Act requires that post-enactment net capital losses (i.e., those incurred after May 31, 2011) be used before pre-enactment net capital loss carryforwards which increases the likelihood that pre-enactment capital loss carryforwards will expire unused.

7. Shares of Beneficial Interest

The Trust’s Declaration of Trust authorizes the Board to issue an unlimited number of shares of beneficial interest and to classify or reclassify any unissued shares of the Trust into one or more additional classes of shares and to classify or reclassify any class of shares into one or more series of shares. Transactions in capital shares are summarized (in thousands) on the following pages for the Target Date, Equity, Fixed Income and Tax Exempt Bond Funds.

	Class I						Class T(1)
	Year Ended 05/31/16			Year Ended 05/31/15			Year Ended 05/31/16			Period Ended 05/31/15
Retirement Income Fund
Shares issued		362			560			–			–
Shares reinvested		9			19			–			–
Shares redeemed		(252	)		(433)			–			–
Net increase		119			146			–			–
Target 2020 Fund
Shares issued		617			355			–	*		–
Shares reinvested		15			2			–			–
Shares redeemed		(188	)		(152	)		–			–
Net increase		444			205			–	*		–

277

	Class I						Class T(1)
	Year Ended 05/31/16			Year Ended 05/31/15			Year Ended 05/31/16			Period Ended 05/31/15
Target 2030 Fund
Shares issued		473			267			–			–
Shares reinvested		21			2			–			–
Shares redeemed		(56	)		(74	)		–			–
Net increase		438			195			–			–
Target 2040 Fund
Shares issued		138			171			–	*		–
Shares reinvested		18			1			–	*		–
Shares redeemed		(59	)		(90	)		–			–
Net increase		97			82			–	*		–
Target 2050 Fund
Shares issued		65			40			–			–*
Shares reinvested		32			2			–			–
Shares redeemed		(92	)		(19	)		–	*		–
Net increase		5			23			–*			–*

⁽¹⁾ Class T commenced operations on April 28, 2015.

* Amount represents less than $500.

	Class I						Class A						Class C						Class R4				Class R5				Class T(1)
	Year Ended 05/31/16			Year Ended 05/31/15			Year Ended 05/31/16			Year Ended 05/31/15			Year Ended 05/31/16			Year Ended 05/31/15			Year Ended 05/31/16		Year Ended 5/31/15		Year Ended 05/31/16		Year Ended 5/31/15		Year Ended 05/31/16			Period Ended 5/31/15
Balanced Allocation Fund
Shares issued		171			217			32			53			1			1			N/A		N/A		N/A		N/A		–	*		–
Shares reinvested		246			60			43			9			2			–			N/A		N/A		N/A		N/A		–			–
Shares redeemed		(544	)		(608	)		(75	)		(127	)		(5	)		(11	)		N/A		N/A		N/A		N/A		–			–
Net increase (decrease)		(127	)		(331	)		–			(65	)		(2	)		(10	)		N/A		N/A		N/A		N/A		–	*		–
International Equity Fund
Shares issued		13,352			5,894			1,292			393			81			63			N/A		N/A		N/A		N/A		N/A			N/A
Share reinvested		431			248			19			8			2			–			N/A		N/A		N/A		N/A		N/A			N/A
Shares redeemed		(2,993	)		(4,438	)		(420	)		(159	)		(37	)		(18	)		N/A		N/A		N/A		N/A		N/A			N/A
Net increase		10,790			1,704			891			242			46			45			N/A		N/A		N/A		N/A		N/A			N/A
International Growth Fund
Shares issued		300			N/A			2			N/A			–			N/A			N/A		N/A		N/A		N/A		N/A			N/A
Net increase		300			N/A			2			N/A			–			N/A			N/A		N/A		N/A		N/A		N/A			N/A
Large Cap Core Fund
Shares issued		229			252			188			9			11			9			N/A		N/A		N/A		N/A		N/A			N/A
Shares reinvested		10			9			2			1			–	*		–			N/A		N/A		N/A		N/A		N/A			N/A
Shares redeemed		(168	)		(365	)		(138	)		(31	)		(11	)		(4	)		N/A		N/A		N/A		N/A		N/A			N/A
Net increase (decrease)		71			(104	)		52			(21	)		–	*		5			N/A		N/A		N/A		N/A		N/A			N/A

278

P N C  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y  3 1,    2 0 1 6

	Class I				Class A				Class C				Class R4				Class R5				Class T(1)
	Year Ended 05/31/16		Year Ended 05/31/15		Year Ended 05/31/16		Year Ended 05/31/15		Year Ended 05/31/16		Year Ended 05/31/15		Year Ended 05/31/16		Year Ended 5/31/15		Year Ended 05/31/16		Year Ended 5/31/15		Year Ended 05/31/16		Period         Ended         5/31/15
Large Cap Growth Fund
Shares issued		234		1,014		546		79		12		39		N/A		N/A		N/A		N/A		N/A		N/A
Shares reinvested		9		4		3		1		–		–		N/A		N/A		N/A		N/A		N/A		N/A
Shares redeemed		(606)		(370)		(112)		(75)		(24)		(1)		N/A		N/A		N/A		N/A		N/A		N/A
Net increase (decrease)		(363)		648		437		5		(12)		38		N/A		N/A		N/A		N/A		N/A		N/A
Large Cap Value Fund
Shares issued		401		715		959		10		1		3		N/A		N/A		N/A		N/A		N/A		N/A
Shares reinvested		32		23		15		8		–*		–		N/A		N/A		N/A		N/A		N/A		N/A
Shares redeemed		(930)		(1,582)		(426)		(117)		(2)		(2)		N/A		N/A		N/A		N/A		N/A		N/A
Net increase (decrease)		(497)		(844)		548		(99)		(1)		1		N/A		N/A		N/A		N/A		N/A		N/A
Mid Cap Fund
Shares issued		16		18		8		12		–*		–		N/A		N/A		N/A		N/A		N/A		N/A
Shares redeemed		(24)		(29)		(73)		(96)		(10)		(10)		N/A		N/A		N/A		N/A		N/A		N/A
Net decrease		(8)		(11)		(65)		(84)		(10)		(10)		N/A		N/A		N/A		N/A		N/A		N/A
Mid Cap Index Fund
Shares issued		41		294		N/A		N/A		N/A		N/A		218		13		N/A		N/A		N/A		N/A
Shares reinvested		9		11		N/A		N/A		N/A		N/A		4		–		N/A		N/A		N/A		N/A
Shares redeemed		(182)		(178)		N/A		N/A		N/A		N/A		(33)		–		N/A		N/A		N/A		N/A
Net increase (decrease)		(132)		127		N/A		N/A		N/A		N/A		189		13		N/A		N/A		N/A		N/A
Multi-Factor Small Cap Core Fund
Shares issued		3,666		1,484		2,296		2,722		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Shares reinvested		6		3		2		1		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Shares redeemed		(1,034)		(443)		(1,446)		(373)		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Net increase		2,638		1,044		852		2,350		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Multi-Factor Small Cap Growth Fund
Shares issued		1,979		270		947		128		367		52		N/A		N/A		N/A		N/A		N/A		N/A
Shares reinvested		27		19		30		39		5		1		N/A		N/A		N/A		N/A		N/A		N/A
Shares redeemed		(323)		(114)		(208)		(121)		(34)		(1)		N/A		N/A		N/A		N/A		N/A		N/A
Net increase		1,683		175		769		46		338		52		N/A		N/A		N/A		N/A		N/A		N/A
Multi-Factor Small Cap Value Fund
Shares issued		167		385		42		77		43		39		N/A		N/A		N/A		N/A		N/A		N/A
Shares reinvested		8		3		12		5		1		–		N/A		N/A		N/A		N/A		N/A		N/A
Shares redeemed		(246)		(146)		(114)		(179)		(34)		(49)		N/A		N/A		N/A		N/A		N/A		N/A
Net increase (decrease)		(71)		242		(60)		(97)		10		(10)		N/A		N/A		N/A		N/A		N/A		N/A
S&P 500 Index Fund
Shares issued		888		2,220		218		249		94		198		110		253		23		12		N/A		N/A
Shares reinvested		244		252		36		31		13		9		10		3		1		–		N/A		N/A
Shares redeemed		(2,956)		(1,119)		(270)		(279)		(181)		(427)		(50)		(23)		(1)		–*		N/A		N/A
Net increase (decrease)		(1,824)		1,353		(16)		1		(74)		(220)		70		233		23		12		N/A		N/A

279

Class I

Class A

Class C

Class R4

Class R5

Class T(1)

Year Ended 05/31/16

Year Ended 05/31/15

Year Ended 05/31/16

Year Ended 05/31/15

Year Ended 05/31/16

Year Ended 05/31/15

Year Ended 05/31/16

Year Ended 5/31/15

Year Ended 05/31/16

Year Ended 5/31/15

Year Ended 05/31/16

Period         Ended         5/31/15

Small Cap Fund

Shares issued

32,946

10,877

1,507

1,177

626

269

N/A

N/A

N/A

N/A

N/A

N/A

Shares reinvested

282

310

30

52

10

13

N/A

N/A

N/A

N/A

N/A

N/A

Shares redeemed

(8,691)

(4,678)

(1,452)

(1,215)

(168)

(214)

N/A

N/A

N/A

N/A

N/A

N/A

Net increase

24,537

6,509

85

14

468

68

N/A

N/A

N/A

N/A

N/A

N/A

Small Cap Index Fund

Shares issued

742

6

N/A

N/A

N/A

N/A

138

26

N/A

N/A

N/A

N/A

Shares reinvested

19

16

N/A

N/A

N/A

N/A

2

–

N/A

N/A

N/A

N/A

Shares redeemed

(466)

–

N/A

N/A

N/A

N/A

(34)

(1)

N/A

N/A

N/A

N/A

Net increase

295

22

N/A

N/A

N/A

N/A

106

25

N/A

N/A

N/A

N/A

^* Amount represents less than $500.

^{(1) Class T commenced operations on April 28, 2015.}

	Class I				Class A				Class C
	Year              Ended             05/31/16		Year             Ended              05/31/15		Year             Ended              05/31/16		Year             Ended              05/31/15		Year             Ended              05/31/16		Year         Ended         05/31/15
Bond Fund
Shares issued		1,771		2,650		3		5		2		5
Shares reinvested		206		253		6		5		–*		–
Shares redeemed		(7,804)		(5,594)		(32)		(45)		(3)		(9)
Net decrease		(5,827)		(2,691)		(23)		(35)		(–)*		(4)
Government Mortgage Fund
Shares issued		493		2,281		16		21		2		1
Shares reinvested		44		58		8		10		1		1
Shares redeemed		(1,329)		(2,440)		(84)		(140)		(50)		(50)
Net decrease		(792)		(101)		(60)		(109)		(47)		(48)
High Yield Bond Fund
Shares issued		177		459		283		7		N/A		N/A
Shares reinvested		81		147		4		3		N/A		N/A
Shares redeemed		(1,126)		(1,719)		(42)		(7)		N/A		N/A
Net increase (decrease)		(868)		(1,113)		245		3		N/A		N/A
Intermediate Bond Fund
Shares issued		1,779		2,235		28		8		12		5
Shares reinvested		281		315		5		5		–*		–
Shares redeemed		(5,568)		(5,260)		(55)		(87)		(12)		32
Net increase (decrease)		(3,508)		(2,710)		(22)		(74)		–*		37

280

P N C  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y  3 1,    2 0 1 6

	Class I				Class A				Class C
	Year              Ended             05/31/16		Year             Ended              05/31/15		Year             Ended              05/31/16		Year             Ended              05/31/15		Year             Ended              05/31/16		Year         Ended         05/31/15
Limited Maturity Bond Fund
Shares issued		8,769		8,450		220		405		3		2
Shares reinvested		146		114		2		2		–*		–
Shares redeemed		(12,289)		(10,136)		(180)		(167)		(15)		(64)
Net increase (decrease)		(3,374)		(1,572)		42		240		(12)		(62)
Total Return Advantage Fund
Shares issued		1,006		1,830		826		16		27		12
Shares reinvested		147		118		13		5		–*		–
Shares redeemed		(3,030)		(7,171)		(119)		(74)		(34)		(9)
Net increase (decrease)		(1,877)		(5,223)		720		(53)		(7)		3
Ultra Short Bond Fund
Shares issued		21,936		24,083		–*		1		N/A		N/A
Shares reinvested		91		54		–*		–*		N/A		N/A
Shares redeemed		(25,305)		(26,637)		(27)		(74)		N/A		N/A
Net decrease		(3,278)		(2,500)		(27)		(73)		N/A		N/A
Intermediate Tax Exempt Bond Fund
Shares issued		1,135		432		21		85		4		15
Shares reinvested		15		39		5		12		–*		1
Shares redeemed		(936)		(870)		(23)		(91)		(13)		(11)
Net increase (decrease)		214		(399)		3		6		(9)		5
Maryland Tax Exempt Bond Fund
Shares issued		183		22		–		1		–*		N/A
Shares reinvested		5		8		–*		–		–*		N/A
Shares redeemed		(605)		(406)		(9)		(23)		(3)		N/A
Net decrease		(417)		(376)		(9)		(22)		(3)		N/A
Ohio Intermediate Tax Exempt Bond Fund
Shares issued		181		170		6		1		–		–
Shares reinvested		8		12		10		13		1		1
Shares redeemed		(647)		(1,206)		(50)		(75)		–*		–
Net increase (decrease)		(458)		(1,024)		(34)		(61)		–*		1
Tax Exempt Limited Maturity Municipal Bond Fund
Shares issued		3,595		1,766		1		1		N/A		N/A
Shares reinvested		16		19		–*		1		N/A		N/A
Shares redeemed		(3,828)		(2,766)		(21)		(3)		N/A		N/A
Net decrease		(217)		(981)		(20)		(1)		N/A		N/A

281

8. Certain Principal Risks

An investment in a Fund is subject to a number of risks. Below is a discussion of some, but not all, of the risks of investing in the Funds. Please see the relevant Fund’s prospectus for a discussion of the principal risks of investing in the Fund.

Some countries in which certain of the Target Date, Equity and Fixed Income Funds may invest require government approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.

The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities exchanges in the United States. Consequently, acquisition and disposition of securities by a Fund may be inhibited.

A significant proportion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by a Fund.

Each Target Date Fund, Balanced Allocation Fund and each Fixed Income Fund may invest in securities whose value is derived from an underlying pool of mortgages or consumer loans. Prepayment of these loans may shorten the stated maturity of these respective obligations and may result in a loss.

Each Target Date, Equity, Fixed Income and Tax Exempt Bond Fund may invest up to 15% of its net assets in illiquid securities which may include securities with contractual restrictions on resale and other securities which may not be readily marketable. The relative illiquidity of some of these securities may adversely affect a Fund’s ability to dispose of such securities in a timely manner and at a fair price. Securities acquired under the provisions of Rule 144A can only be traded between qualified institutional buyers. Any such security will not be considered illiquid so long as it is determined by the Board or the Adviser, acting under guidelines approved and monitored by the Board, that an adequate trading market exists for that security. Details of investments in illiquid and/or restricted securities are included in each Fund’s Schedule of Investments.

Maryland Tax Exempt Bond and Ohio Intermediate Tax Exempt Bond Funds follow an investment policy of investing primarily in municipal obligations of one state. Intermediate Tax Exempt Bond follows an investment policy of investing in municipal obligations of various states which may, at times, comprise concentrations in one or several states. Economic changes affecting each state and related public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by Tax Exempt Bond Funds.

The repayment of certain municipal obligations may be insured by third parties. Although bond insurance reduces the risk of loss due to default by a municipal issuer, insured bonds remain subject to the risk that their market values may fluctuate for other reasons and there is no assurance that the insurance provider will meet its obligations. Insured securities have been identified in the Schedules of Investments.

A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in the Tax Exempt Bond Funds.

Certain obligations held in the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity.

9. Securities Lending

To generate additional income, the Target Date Funds, Equity Funds and Fixed Income Funds (the “Lending Funds”) may lend their securities pursuant to a securities lending agency agreement (“Lending Agreement”) with Brown Brothers Harriman & Co. (“BBH”), the securities lending agent. The Lending Funds may lend up to 50% of the securities in which they are invested requiring that the loan be continuously collateralized by cash as collateral equal at all times to at least 102% of the market value plus accrued interest of the domestic securities loaned and 105% of the market value plus accrued interest on the international securities loaned. The Lending Funds continue to earn interest and dividends on securities loaned while simultaneously seeking to earn interest on the investment of collateral. Income earned on the investment of collateral, net of broker rebates and other expenses incurred by the securities lending agent, is split between the Lending Funds and the securities lending agent on the basis of agreed upon contractual terms.

There may be risks of delay in recovery of the securities, loss of value in the collateral provided by the borrower or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers deemed by the Adviser to be of good standing and creditworthy under guidelines established by the Board and when, in the judgment of the Adviser, the consideration which can be earned currently from such securities loans justifies the attendant risks. In addition, the Lending Funds benefit from a borrower default indemnity provided by BBH. BBH’s indemnity allows for full replacement of the securities loaned in the event of borrower default if the collateral received from the borrower does not cover the value on the securities loaned. If BBH determines that a full replacement of the securities loaned is commercially impracticable, BBH shall, in lieu of effecting a full replacement, pay to the affected Lending Fund(s) an amount equal to the market value of the loaned securities determined at the close of business on the date of the default event. Loans are subject to termination by the Lending Funds or the borrower at any time, and are, therefore, not considered to be illiquid investments.

282

P N C  F u n d s

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

M a y  3 1,    2 0 1 6

The following table presents the amounts payable for collateral received for loaned securities, as presented in the Lending Funds’ Statements of Assets and Liabilities, by the class of securities on loan.

Common Stocks (000)

Foreign Common Stocks (000)

Corporate Bonds (000)

Master Limited Partnerships (000)

Total         Payable for          Cash Collateral         Received         (000)

Balanced Allocation Fund

$

87

$

239

$

117

$

–

$

443

International Equity Fund

–

50,401

–

–

50,401

Large Cap Core Fund

284

–

–

–

284

Large Cap Growth Fund

1,546

–

–

–

1,546

Mid Cap Fund

827

–

–

–

827

Multi-Factor Small Cap Core Fund

5,232

–

–

160

5,392

Multi-Factor Small Cap Growth Fund

2,459

–

–

–

2,459

Multi-Factor Small Cap Value Fund

2,684

–

–

–

2,684

S&P 500 Index Fund

648

–

–

–

648

Small Cap Fund

60,934

–

–

–

60,934

Bond Fund

–

–

243

–

243

High Yield Bond Fund

–

–

219

–

219

Intermediate Bond Fund

–

–

3,685

–

3,685

Total Return Advantage Fund

–

–

1,631

–

1,631

10. Indemnifications

In the ordinary course of business, the Funds enter into contracts that contain a variety of indemnifications. The Funds have not historically incurred material expenses in respect of those provisions.

11. Relevant Accounting Pronouncements

In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective prospectively for annual periods ending after December 15, 2016, and interim periods thereafter. At this time, management is evaluating the implications of these changes on the financial statements.

12. Subsequent Events

Subsequent events have been evaluated through the date that the financial statements were issued. There were no material subsequent events identified which required adjustment to, or additional disclosure in, the financial statements.

Effective July 5, 2016, PNC Small Cap Fund closed to most new investors. Existing investors may continue to buy, redeem, or exchange shares of the Fund through their existing accounts in accordance with the terms of the Fund’s prospectus and statement of additional information.

283

T R U S T E E S’   R E V I E W   A N D   A P P R O V A L   O F   A D V I S O R Y   A G R E E M E N T

(U n a u d i t e d)

At a meeting held on December 2-3, 2015, the Trustees of PNC Funds (the “Trust”), including a majority of the Trustees who are not “interested persons” (as such term is defined in Section 2(a)(19) of the 1940 Act (the “Independent Trustees”)), met in person to consider a proposed Advisory Agreement (the “Advisory Agreement”) between the Trust, in respect of PNC International Growth Fund (the “New Fund”), and PNC Capital Advisors, LLC (the “Adviser”).

In connection with that meeting, the Trustees received and reviewed comprehensive written materials prepared by the Adviser regarding the proposed New Fund, including the proposed contractual arrangements. These materials included information regarding the nature of the advisory services proposed to be provided by the Adviser, including the experience of the proposed portfolio management personnel; the performance of the Adviser in managing other similar accounts; the fees and estimated expenses of the New Fund, including proposed expense limitation arrangements; the advisory fees and expense ratios of certain mutual funds with investment objectives and strategies similar to those proposed for the New Fund; other benefits that would inure to the Adviser due to the Adviser’s relationship with the New Fund. The Trustees also considered information the Adviser provided regarding the New Fund’s distribution opportunities, including those that might arise due to distinctions between the New Fund and other similar funds sponsored by the Adviser. The Trustees also considered materials pertaining to a number of other factors, including the Adviser’s estimated profitability with respect to the New Fund during the first five years of the New Fund’s operations and the potential for the Adviser to achieve economies of scale in managing the New Fund beyond the economies of scale reflected in the proposed advisory fees. The Trustees considered information relevant to the Adviser’s services, capabilities and operations that they received in connection with their consideration of the New Fund as well as other information they had received in connection with their duties as Trustees of the other PNC Funds and PNC Advantage Funds, including information regarding the Adviser’s practices with respect to the allocation of brokerage and the potential benefits that may inure to the Adviser as a result.

Throughout their deliberations, the Trustees were advised by their independent counsel. The Trustees did not identify any particular information that was all-important or controlling, and each Trustee may have attributed different weights to the various factors.

Based on this review, the Trustees concluded that the Adviser had the capabilities, resources and personnel necessary to act as the investment adviser to the New Fund. Based on their evaluation of all material factors, including those described above, the Trustees concluded that the terms of the Advisory Agreement were reasonable and fair and that the approval of the Advisory Agreement was in the best interests of the New Fund.

284

P N C  F u n d s

N O T I C E   T O   S H A R E H O L D E R S

(U n a u d i t e d)

The information set forth below is for each Fund’s fiscal year as required by Federal income tax laws. Shareholders, however, must report dividends on a calendar year basis for income tax purposes, which may include dividends for portions of two fiscal years of a Fund. Accordingly, the information needed by shareholders for calendar year 2016 income tax purposes will be sent to them in early 2017. Please consult your tax adviser for proper treatment of this information.

Tax Information

For shareholders that do not have a May 31, 2016 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2016 tax year end, please consult your tax adviser as to the pertinence of this notice.

The amounts of distributions designated as long-term capital gains are as follows (in thousands):

Name of Fund
Retirement Income Fund	$	57
Target 2020 Fund		72
Target 2030 Fund		136
Target 2040 Fund		143
Target 2050 Fund		242
Balanced Allocation Fund		2,797
Mid Cap Index Fund		59
Multi-Factor Small Cap Core Fund		122
Multi-Factor Small Cap Growth Fund		1,643
S&P 500 Index Fund		3,356
Small Cap Fund		8,625
Small Cap Index Fund		109
Bond Fund		517
High Yield Bond Fund		102
Intermediate Bond Fund		665
Limited Maturity Bond Fund		39
Intermediate Tax Exempt Bond Fund		482
Maryland Tax Exempt Bond Fund		550
Ohio Intermediate Tax Exempt Bond Fund		735

Of the dividends paid by the following Target Date and Equity Funds, the corresponding percentages represent the amount of such dividends which may qualify for the dividends received deduction available to corporate shareholders.

Name of Fund
Retirement Income Fund	22.07%
Target 2020 Fund	26.61%
Target 2030 Fund	33.69%
Target 2040 Fund	35.98%
Target 2050 Fund	27.58%
Balanced Allocation Fund	48.39%
Large Cap Core Equity Fund	100.00%
Large Cap Growth Fund	100.00%
Large Cap Value Fund	100.00%
Mid Cap Index Fund	73.73%
Multi-Factor Small Cap Core Fund	100.00%
Multi-Factor Small Cap Value Fund	57.54%

285

Name of Fund
S&P 500 Index Fund	99.19%
Small Cap Fund	99.86%
Small Cap Index Fund	71.92%

If a Fund meets the requirements of Section 853 of the Code, the Fund may elect to pass through to its shareholders credits for foreign taxes paid. The total amounts of income received from sources within foreign countries and possessions of the United States are as follows:

Name of Fund	Amount (000)			Per Share
International Equity Fund		$	13,620	0.314
International Growth Fund			26	0.088

The total amounts of taxes paid to such countries are as follows:

Name of Fund	Amount (000)			Per Share
International Equity Fund		$	1,352	0.031
International Growth Fund			4	0.012

Of the dividends paid by the following Target Date and Equity Funds, the corresponding percentages represent the amount of such dividends which will qualify for the 15% dividend income tax rate.

Name of Fund
Retirement Income Fund	27.18%
Target 2020 Fund	35.74%
Target 2030 Fund	46.44%
Target 2040 Fund	50.27%
Target 2050 Fund	38.67%
Balanced Allocation Fund	63.48%
International Equity Fund	68.44%
Large Cap Core Fund	100.00%
Large Cap Growth Fund	100.00%
Large Cap Value Fund	100.00%
Mid Cap Index Fund	75.33%
Multi-Factor Small Cap Core Fund	100.00%
Multi-Factor Small Cap Value Fund	67.43%
S&P 500 Index Fund	99.87%
Small Cap Fund	99.86%
Small Cap Index Fund	76.98%

Of the dividends paid from net investment income, excluding short-term capital gains, by each of the Tax Exempt Bond Funds, the corresponding percentages represent the amount of such dividends which are tax exempt for regular Federal income tax purposes.

Name of Fund
Intermediate Tax Exempt Bond Fund	89.11%
Maryland Tax Exempt Bond Fund	91.10%
Ohio Intermediate Tax Exempt Bond Fund	65.71%
Tax-Exempt Limited Maturity Bond Fund	100.00%

286

P N C  F u n d s

N O T I C E   T O   S H A R E H O L D E R S

(Unaudited)

Proxy Voting

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to their portfolio securities as well as information regarding how the Trust voted proxies during the most recent 12-month period ended June 30, is available upon request, without charge, by calling 1-800-622-FUND (3863), visiting the Trust’s website at pncfunds.com, or on the SEC’s website at http://www.sec.gov.

Quarterly Schedule of Investments

The Form N-Q, which includes a complete schedule of investments, must be filed with the SEC within 60 days of the end of the Trust’s first and third fiscal quarters. The Trust’s Forms N-Q are available upon request, without charge, by calling 1-800-622-FUND (3863), visiting the Trust’s website at pncfunds.com, on the SEC’s website at http://www.sec.gov, or they may be reviewed and/or copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).

287

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P N C  F u n d s

P N C  F U N D S  N O T I C E  O F  P R I V A C Y  P O L I C Y  &  P R A C T I C E S

( U n a u d i t e d )

The funds recognize and respect the privacy concerns and expectations of our customers⁽¹⁾. Federal law gives customers the right to limit some but not all sharing of customer information that we collect. Federal law also requires us to tell you how we collect, share and protect your personal information.

This notice is provided to you so that you will know what kinds of information we collect and the circumstances in which that information may be disclosed to third parties who are not affiliated with the funds.

Collection of Customer Information

The funds collect nonpublic personal information about our customers from the following sources:

● Account Applications and other forms, which may include a customer’s name, address, social security number, date of birth, and information about a customer’s investment goals and risk tolerance;

● Account History. including information about the transactions and balances in a customer’s accounts; and

● Correspondence, written, telephonic or electronic, between a customer and the funds or service providers to the funds.

Disclosure of Customer Information⁽²⁾

The funds may disclose all of the information described above to certain third parties who are not affiliated with the funds under one or more of these circumstances:

● As Authorized – if you request or authorize the disclosure of the information.

● As Permitted by Law – for example, sharing information with companies who maintain or service customer accounts for the funds is permitted and is essential for us to provide shareholders with necessary or useful services with respect to their accounts.

● Under Joint Agreements – the funds may also share information with companies that perform marketing services on our behalf or to other financial institutions with whom the funds have joint marketing agreements, such as The PNC Financial Services Group, Inc. and its affiliates.

These third parties must agree to strict confidentiality provisions to assure the protection of your information.

Sharing of Customer Information

We do not share such customer information with affiliates or non-affiliates for use in their marketing activities.

Security of Customer Information

The funds require service providers to the funds:

● to maintain policies and procedures designed to assure only appropriate access to, and use of, information about customers of the funds; and

● to maintain physical, electronic and procedural safeguards that comply with federal standards to guard nonpublic personal information of customers of the funds.

The funds will adhere to the policies and practices described in this notice regardless of whether you are a current or former shareholder of the funds. If you have any questions concerning this Notice, or about the funds in general, please call: 1-800-622-3863 for PNC Funds.

⁽¹⁾  For purposes of this notice, the terms “customer” or “customers” includes individuals who provide nonpublic personal information to the funds, but do not invest in the funds’ shares.

⁽²⁾  The funds do not share information about shareholders who are residents of California with affiliates of the funds or with unaffiliated companies under joint marketing agreements.

Investment Adviser

PNC Capital Advisors, LLC

One East Pratt Street, 5th Floor

Baltimore, MD 21202

Underwriter

PNC Funds Distributor, LLC

Three Canal Plaza,

Suite 100,

Portland, ME 04101

www.foreside.com

Legal Counsel

Ropes & Gray LLP

800 Boylston Street

Boston, MA 02199-3600

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

1700 Market Street

Philadelphia, PA 19103

Custodian

The Bank of New York Mellon

One Wall Street

New York, NY 10286

P.O. Box 9795
Providence, RI 02940-9795	PRESORTED STANDARD
	U.S. POSTAGE
	PAID
	BNY MELLON

Item 2. Code of Ethics.

(a) The Registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party.

(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, and that relates to any element of the code of ethics description.

(d) The Registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this Item.

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the Registrant’s Board of Trustees has determined that Dorothy A. Berry, L. White Matthews III and Stephen M. Todd is each qualified to serve as an Audit Committee financial expert serving on its Audit Committee and that each is “independent,” as defined by paragraph (a)(2) of this Item.

Item 4. Principal Accountant Fees and Services.

● Registrant may incorporate the following information by reference, if this information has been disclosed in the Registrant’s definitive proxy statement or definitive information statement. The proxy statement or information statement must be filed no later than 120 days after the end of the fiscal year covered by the Annual Report.

Audit Fees

(a) The aggregate fees billed for professional services rendered by the Registrant’s independent auditors for the audit of the Registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $764,251 and $713,872 for the fiscal years ended May 31, 2016 and 2015, respectively.

Audit-Related Fees

(b) The aggregate fees billed for assurance and related services by the Registrant’s independent auditors that are reasonably related to the performance of the audit of the Registrant’s financial statements and not reported under paragraph (a) above were $0 and $0 for the fiscal years ended May 31, 2016 and 2015, respectively.

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the Registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the Registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the Registrant were $0 and $0 for the Registrant’s fiscal years ended May 31, 2016 and 2015, respectively.

Tax Fees

(c) The aggregate fees billed for professional services rendered by the Registrant’s independent auditors for tax-related services were $26,869 and $48,505 for the fiscal years ended May 31, 2016 and 2015, respectively. The fees are associated with the review of certain funds’ excise tax calculations and Subchapter M distribution requirements; and, the review of certain funds’ federal and state income tax returns and Subchapter M distribution requirements.

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the Registrant’s independent auditors for tax-related services provided to the Registrant’s investment adviser and other services providers under common control with the adviser and that relate directly to the operations or financial reporting of the Registrant were $0 and $0 for the Registrant’s fiscal years ended May 31, 2016 and 2015, respectively.

All Other Fees

(d) The aggregate fees billed for all professional services provided by the Registrant’s independent auditors to the Registrant other than those set forth in paragraphs (a), (b), and (c) above were $0 and $0 for the fiscal years ended May 31, 2016 and 2015, respectively.

The aggregate fees billed in each of the last two fiscal years for all professional services other than those set forth in paragraphs (b) and (c) above provided by the Registrant’s independent auditors to the Registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the Registrant were $0 and $0 for the Registrant’s fiscal years ended May 31, 2016 and 2015, respectively.

(e)(1) Disclose the Audit Committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The Audit Committee shall:

1. Determine the firm to be employed as the Funds’ independent auditors and the terms of their engagement for the Funds’ audit and non-audit services.

(a) The Audit Committee shall review and approve proposals for the independent auditors to render permissible non-audit services. The Audit Committee may adopt pre-approval policies and procedures, including both general pre-approvals and terms for specific case-by-case approvals, and may delegate the authority to grant such pre-approvals to one or more members of the Committee.

(b) The pre-approval requirement may be waived with respect to the provision of non-audit services for the Funds if: (i) the aggregate amount of all such non-audit services provided to the Funds constitutes not more than 5% of the total amount of revenues paid by the Funds to its independent auditor during the fiscal year in which the non-audit services are provided; (ii) such services were not recognized at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit.

2. Review and approve in advance with the independent auditors each non-audit engagement involving the Funds’ independent auditor and the Funds’ investment adviser and any entity controlling, controlled by or under common control with the adviser (“control affiliates”) where: (i) the investment adviser or its control affiliate provides ongoing services to the Funds; and (ii) the engagement relates directly to the operations and financial reporting of the Funds.

(a) The pre-approval requirement may be waived if: (i) the aggregate amount of all services provided constitutes not more than 5% of the total amount of revenues paid to the Funds’ independent auditor by the Funds’ investment adviser and its control affiliates that provide ongoing services to the Funds during the fiscal year in which the services are provided that would have to be pre-approved by the Funds’ Audit Committee; (ii) such services were not recognized by the Funds’ adviser or its control affiliates (that provide ongoing services to the Fund) at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit.

(e)(2) There were no services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable

(g) The aggregate non-audit fees billed in each of the last two fiscal years by the Registrant’s independent auditors for services rendered to the Registrant and its investment adviser (not including any sub-adviser whose role is primarily portfolio management and is sub-contracted with or overseen by another investment adviser) and other service providers under common control with the adviser that provides ongoing services to the Registrant were $0 and $0 for the Registrant’s fiscal years ended May 31, 2016 and 2015, respectively.

(h) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

P N C  M i d  C a p   I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — 96.9%
Consumer Discretionary — 11.6%
Aaron’s		242	$	6
Abercrombie & Fitch, Cl A		357		7
AMC Networks, Cl A*		262		17
American Eagle Outfitters		672		11
Ascena Retail Group*		852		6
Big Lots		161		8
Brinker International		229		10
Brunswick		352		17
Buffalo Wild Wings*		80		12
Cabela’s*		184		9
Cable One		15		7
CalAtlantic Group		273		10
Carter’s		200		20
Cheesecake Factory		179		9
Chico’s FAS		569		6
Cinemark Holdings		371		13
Cracker Barrel Old Country Store		87		13
CST Brands		291		11
Dana Holding		604		7
Deckers Outdoor*		126		7
Dick’s Sporting Goods		344		15
Domino’s Pizza		203		25
DreamWorks Animation SKG, Cl A*		169		7
Dunkin’ Brands Group		375		16
Fossil Group*		215		6
Gentex		1,081		18
Graham Holdings, Cl B		16		8
HSN		118		6
J.C. Penney*		1,185		9
Jack in the Box		119		10
John Wiley & Sons, Cl A		173		9
Kate Spade*		466		10
Live Nation Entertainment*		541		13
Meredith		137		7
Murphy USA*		148		10
New York Times, Cl A		496		6
NVR*		14		24
Office Depot*		3,010		11
Panera Bread,ClA*		85		19
Polaris Industries		253		22
Pool		150		14
Service Corporation International		704		19
Skechers U.S.A., Cl A*		498		16
Sotheby’s		195		6
Tempur Sealy International*		245		14
Thor Industries		152		10
Time		426		7
Toll Brothers*		608		18
TRI Pointe Group*		550		6
Tupperware Brands		192		11
Vista Outdoor*		233		12
Wendy’s		872		9
Williams-Sonoma		345		18
				617
Consumer Staples — 4.2%
Avon Products		1,751		7
Boston Beer,ClA*		40		6
Casey’s General Stores		146		18
Dean Foods		358		6
Edgewell Personal Care		226		18

	Number of Shares		Value (000)
Energizer Holdings		212	$	10
Flowers Foods		734		14
Hain Celestial Group*		327		16
Ingredion		250		29
Lancaster Colony		69		8
Post Holdings*		225		17
Snyder’s-Lance		225		7
Sprouts Farmers Market*		553		14
TreeHouse Foods*		198		19
United Natural Foods*		209		8
WhiteWave Foods*		612		27
				224
Energy — 2.8%
Dril-Quip*		139		8
Energen		268		13
Gulfport Energy*		426		13
HollyFrontier		921		25
Nabors Industries (Bermuda)		1,006		9
Noble PLC (United Kingdom)		1,101		9
Oceaneering International		378		13
Oil States International*		165		5
Patterson-UTI Energy		495		9
QEP Resources		464		9
Rowan PLC, Cl A (United Kingdom)		475		8
Superior Energy Services		448		8
Western Refining		359		8
World Fuel Services		271		12
				149
Financials — 26.3%
Alexander & Baldwin		158		6
Alexandria Real Estate Equities REIT		261		25
Alleghany*		56		31
American Campus Communities REIT		484		23
American Financial Group		266		19
Arthur J Gallagher		608		29
Aspen Insurance Holdings (Bermuda)		227		11
Associated Banc		581		11
BancorpSouth		308		7
Bank of Hawaii		153		11
Bank of the Ozarks		338		13
Brown & Brown		430		16
Camden Property Trust REIT		318		27
Care Capital Properties REIT		358		9
Cathay General Bancorp		281		9
CBOE Holdings		326		21
CNO Financial Group		652		13
Commerce Bancshares		302		15
Communications Sales & Leasing REIT		394		10
Corporate Office Properties Trust REIT		335		9
Corrections Corp of America REIT		414		14
Cullen/Frost Bankers		190		13
Douglas Emmett REIT		494		17
Duke Realty REIT		1,216		29
East West Bancorp		523		20
Eaton Vance		399		15
Endurance Specialty Holdings (Bermuda)		226		15
EPR Properties REIT		218		16
Equity One REIT		332		10
Everest Re Group (Bermuda)		177		32
FactSet Research Systems		158		25

See Notes to Financial Statements.

1

P N C  M i d  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Financials — continued
Federated Investors, Cl B		337	$	11
First American Financial		396		15
First Horizon National		873		13
First Niagara Financial Group		1,300		14
FirstMerit		591		13
FNB		776		10
Fulton Financial		647		9
Genworth Financial, Cl A*		1,564		6
Hancock Holding		275		8
Hanover Insurance Group		165		14
Highwoods Properties REIT		357		17
Hospitality Properties Trust REIT		592		15
Janus Capital Group		507		8
Jones Lang LaSalle		175		21
Kemper		181		6
Kilroy Realty REIT		354		22
Lamar Advertising, Cl A REIT		297		19
LaSalle Hotel Properties REIT		475		11
Liberty Property Trust REIT		491		18
Mack-Cali Realty REIT		311		8
MarketAxess Holdings		126		18
Mercury General		117		6
Mid-America Apartment Communities REIT		280		29
MSCI		324		26
National Retail Properties REIT		545		25
New York Community Bancorp		1,937		30
Old Republic International		910		17
Omega Healthcare Investors REIT		679		22
PacWest Bancorp		407		17
Post Properties REIT		199		12
Primerica		157		9
Prosperity Bancshares		224		12
Raymond James Financial		453		25
Rayonier REIT		437		11
Regency Centers REIT		361		28
Reinsurance Group of America		244		24
RenaissanceRe Holdings (Bermuda)		169		20
Royal Bank of Canada		1		–
SEI Investments		501		26
Senior Housing Properties Trust REIT		802		15
Signature Bank*		206		28
SLM*		1,537		11
Sovran Self Storage REIT		157		17
Stifel Financial*		240		9
SVB Financial Group*		193		21
Synovus Financial		485		16
Tanger Factory Outlet Centers REIT		362		13
Taubman Centers REIT		248		17
TCF Financial		606		9
Trustmark		256		6
Umpqua Holdings		830		13
Urban Edge Properties REIT		332		9
Valley National Bancorp		869		8
W.R. Berkley		362		21
Waddell & Reed Financial, Cl A		371		8
Washington Federal		336		8
Webster Financial		331		13
Weingarten Realty Investors REIT		437		16
WP GLIMCHER REIT		727		7
				1,401

	Number of Shares		Value (000)
Healthcare — 8.3%
Akorn*		288	$	9
Align Technology*		244		19
Allscripts Healthcare Solutions*		747		10
Amsurg*		210		16
Bio-Rad Laboratories, Cl A*		77		11
Bio-Techne		122		13
Catalent*		338		10
Charles River Laboratories International*		166		14
Community Health Systems*		634		9
Cooper		173		28
Hill-Rom Holdings		219		11
IDEXX Laboratories*		302		26
LifePoint Health*		174		12
LivaNova PLC (United Kingdom)*		188		9
MEDNAX*		373		26
Mettler-Toledo International*		96		36
Molina Healthcare*		190		9
Owens & Minor		245		9
PAREXEL International*		211		13
ResMed		542		32
STERIS PLC (United Kingdom)		341		24
Teleflex		146		24
United Therapeutics*		195		23
VCA*		259		17
WellCare Health Plans*		152		15
West Pharmaceutical Services		242		18
				443
Industrials — 14.6%
A.O. Smith		264		22
AECOM*		539		17
AGCO		275		14
B/E Aerospace		377		18
Carlisle		230		24
CEB		117		7
CLARCOR		165		10
Clean Harbors*		186		10
Copart*		328		16
Crane		177		10
Curtiss-Wright		157		13
Deluxe		171		11
Donaldson		451		15
Esterline Technologies*		122		8
Fortune Brands Home & Security		573		34
GATX		150		7
Genesee & Wyoming, Cl A*		222		13
Graco		211		17
Granite Construction		154		7
Herman Miller		217		7
HNI		145		7
Hubbell		204		22
Huntington Ingalls Industries		164		25
IDEX		284		24
ITT		330		12
JetBlue Airways*		1,469		26
KBR		573		8
Kennametal		284		7
Kirby*		178		13
KLX*		193		6
Landstar System		153		10
Lennox International		149		20

See Notes to Financial Statements.

2

	Number of Shares		Value (000)
COMMON STOCKS — continued
Industrials — continued
Lincoln Electric Holdings		245	$	15
ManpowerGroup		286		23
MSC Industrial Direct, Cl A		184		14
Nordson		175		15
NOW*		413		7
Old Dominion Freight Line*		269		17
Orbital ATK		226		20
Oshkosh		242		11
Regal-Beloit		181		10
Rollins		349		10
RR Donnelley & Sons		785		13
Teledyne Technologies*		125		12
Terex		468		10
Timken		265		9
Toro		197		18
Trinity Industries		621		11
Triumph Group		179		7
Valmont Industries		77		11
Wabtec		357		28
Waste Connections		448		29
Watsco		98		13
Woodward		201		11
				774
Information Technology — 16.1%
ACI Worldwide*		455		9
Acxiom*		283		6
Advanced Micro Devices*		1,530		7
ANSYS*		347		31
ARRIS International PLC (United Kingdom)*		701		17
Arrow Electronics*		340		22
Avnet		540		22
Belden		148		10
Broadridge Financial Solutions		413		27
Cadence Design Systems*		1,041		26
CDK Global		524		29
Ciena*		531		9
Cognex		285		12
CommVault Systems*		147		7
Computer Sciences		352		17
Convergys		355		10
CoreLogic*		328		12
Cree*		429		10
Cypress Semiconductor		1,119		12
Diebold		278		7
DST Systems		116		14
Fair Isaac		110		12
Fairchild Semiconductor International*		431		9
FEI		125		13
Fortinet*		514		18
Gartner*		277		28
Ingram Micro, Cl A		567		20
Integrated Device Technology*		482		11
InterDigital		119		7
Intersil,ClA		493		7
IPG Photonics*		140		12
j2 Global		172		12
Jabil Circuit		821		16
Jack Henry & Associates		299		25
Keysight Technologies*		586		18
Leidos Holdings		249		12

	Number of Shares		Value (000)
Lexmark International, Cl A		191	$	7
Manhattan Associates*		261		17
MAXIMUS		240		14
Mentor Graphics		341		7
Microsemi*		419		14
National Instruments		406		12
NCR*		444		14
NetScout Systems*		384		9
Polycom*		529		6
PTC*		411		15
Rackspace Hosting*		401		10
Science Applications International		144		8
Silicon Laboratories*		143		7
Synaptics*		161		11
SYNNEX		107		10
Synopsys*		545		28
Tech Data*		123		9
Teradyne		830		17
Trimble Navigation*		925		24
Tyler Technologies*		126		19
Ultimate Software Group*		106		22
VeriFone Systems*		423		11
Vishay Intertechnology		485		6
WEX*		133		12
Zebra Technologies, Cl A*		253		13
				858
Materials — 6.9%
Albemarle		321		25
AptarGroup		234		18
Ashland		228		26
Bemis		365		18
Cabot		241		11
Carpenter Technology		186		6
Commercial Metals		134		2
Compass Minerals International		126		10
Domtar		223		9
Eagle Materials		157		12
Louisiana-Pacific*		526		10
Minerals Technologies		126		7
NewMarket		36		15
Olin		499		12
Packaging Corporation of America		339		23
PolyOne		271		10
Reliance Steel & Aluminum		247		18
Royal Gold		219		12
RPM International		453		23
Scotts Miracle-Gro, Cl A		180		13
Sensient Technologies		167		12
Silgan Holdings		162		8
Sonoco Products		375		18
Steel Dynamics		779		19
Valspar		225		24
Worthington Industries		158		6
				367
Telecommunication Services — 0.2%
Telephone & Data Systems		354		10
Utilities — 5.9%
Alliant Energy		853		32
Aqua America		675		22

See Notes to Financial Statements.

3

P N C  M i d  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Utilities — continued
Atmos Energy		390	$	28
Black Hills		192		12
Great Plains Energy		596		17
Hawaiian Electric Industries		408		13
IDACORP		196		14
MDU Resources Group		650		15
National Fuel Gas		284		16
OGE Energy		706		21
ONE Gas		202		12
PNM Resources		306		10
Questar		647		16
UGI		597		26
Vectren		314		16
Westar Energy		493		28
WGL Holdings		204		13
				311
Total Common Stocks (Cost $4,690)				5,154

	Number of Shares		Value (000)
EXCHANGE-TRADED FUND — 1.2%
SPDR® S&P MidCap 400® ETF Trust		226	$	62
Total Exchange-Traded Fund (Cost $62)				62
MONEY MARKET FUND — 1.7%
PNC Government Money Market Fund, Class I Shares 0.080%† (A)		91,299		91
Total Money Market Fund (Cost $91)				91
TOTAL INVESTMENTS — 99.8% (Cost $4,843)**				5,307
Other Assets & Liabilities – 0.2%				9
TOTAL NET ASSETS — 100.0%			$	5,316

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $5,032.

Gross unrealized appreciation (000)	$596
Gross unrealized depreciation (000)	(321	)
Net unrealized appreciation (000)	$275

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) The rate quoted is the annualized seven-day effective yield of the fund at period end.

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	5,154		$	–		$	–		$	5,154
Exchange-Traded Fund			62			–			–			62
Money Market Fund			91			–			–			91
Total Assets - Investments in Securities		$	5,307		$	–		$	–		$	5,307

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

4

P N C  S & P  5 0 0  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — 98.6%
Consumer Discretionary — 12.6%
Advance Auto Parts		668	$	103
Amazon.com*		3,685		2,663
AutoNation*		718		36
AutoZone*		284		216
Bed Bath & Beyond*		1,629		73
Best Buy		2,468		79
BorgWarner		2,136		73
Cablevision Systems, Cl A		1,882		65
CarMax*#		2,060		111
Carnival (Panama)		4,175		199
CBS, Cl B		4,080		225
Charter Communications*		1,308		286
Chipotle Mexican Grill*		274		121
Coach		2,526		100
Comcast, Cl A		22,255		1,409
D.R. Horton		3,031		93
Darden Restaurants		1,127		76
Delphi Automotive PLC (Jersey)		2,628		179
Discovery Communications, Cl A*		1,331		37
Discovery Communications, Cl C*		2,436		65
Dollar General		2,858		257
Dollar Tree*		2,071		188
Expedia		1,083		120
Ford Motor		35,846		484
Gap		2,493		45
Garmin (Switzerland)		967		41
General Motors		12,909		404
Genuine Parts		1,360		132
Goodyear Tire & Rubber		2,125		59
H&R Block		2,447		52
Hanesbrands		3,573		97
Harley-Davidson		1,960		91
Harman International Industries		607		47
Hasbro		1,025		89
Home Depot		11,718		1,548
Interpublic Group		3,712		89
Interval Leisure Group		750		11
Johnson Controls		5,819		257
Kohl’s		1,904		69
L Brands		2,395		164
Leggett & Platt		1,211		61
Lennar, Cl A		1,396		64
Lowe’s		8,372		671
Macy’s		3,070		102
Marriott International, Cl A#		1,891		125
Mattel		3,015		96
McDonald’s		8,444		1,031
Michael Kors Holdings (Virgin Islands)*		1,674		72
Mohawk Industries*		546		107
Netflix*		3,931		403
Newell Rubbermaid		4,257		203
News, Cl A		4,347		52
News, Cl B		1,020		13
NIKE, Cl B		12,233		675
Nordstrom#		1,374		52
Omnicom Group		2,362		197
O’Reilly Automotive*		904		239
Priceline Group*		461		583
PulteGroup		2,811		53
PVH		704		66
Ralph Lauren		571		54

	Number of Shares		Value (000)
Ross Stores		3,732	$	199
Royal Caribbean Cruises (Liberia)#		1,499		116
Scripps Networks Interactive, Cl A		826		53
Signet Jewelers (Bermuda)		748		74
Staples		5,785		51
Starbucks		13,623		748
Starwood Hotels & Resorts Worldwide		1,740		128
Target		5,557		382
TEGNA		1,999		46
Tiffany		1,129		70
Time Warner		7,419		561
TJX		6,245		475
Tractor Supply		1,277		123
TripAdvisor*		994		67
Twenty-First Century Fox, Cl A		10,388		300
Twenty-First Century Fox, Cl B		4,067		119
Ulta Salon Cosmetics & Fragrance*		594		138
Under Armour, Cl A*#		1,656		62
Under Armour, Cl C*		1,656		58
Urban Outfitters*		1,037		30
VF		3,094		193
Viacom, Cl B		3,411		151
Walt Disney		13,795		1,369
Whirlpool		715		125
Wyndham Worldwide		1,072		72
Wynn Resorts#		737		71
Yum! Brands		3,957		325
				21,478
Consumer Staples — 10.0%
Altria Group		18,031		1,148
Archer-Daniels-Midland		5,771		247
Brown-Forman, Cl B		979		96
Campbell Soup		1,605		97
Church & Dwight		1,206		119
Clorox		1,139		146
Coca-Cola		35,996		1,605
Coca-Cola European Partners PLC (United Kingdom)		2,195		85
Colgate-Palmolive		8,193		577
ConAgra Foods		4,059		186
Constellation Brands, Cl A		1,513		232
Costco Wholesale		4,095		609
CVS Health		10,183		982
Dr Pepper Snapple Group		1,712		156
Estee Lauder, Cl A		2,025		186
General Mills		5,347		336
Hershey		1,360		126
Hormel Foods		2,436		84
J.M. Smucker		1,139		147
Kellogg		2,183		162
Kimberly-Clark		3,300		419
Kraft Heinz		5,438		452
Kroger		9,103		326
McCormick		1,178		114
Mead Johnson Nutrition		1,819		150
Molson Coors Brewing, Cl B		1,687		167
Mondelez International, Cl A		14,788		658
Monster Beverage*		1,344		202
PepsiCo		13,255		1,341
Philip Morris International		14,248		1,406
Procter & Gamble		24,245		1,965

See Notes to Financial Statements.

1

P N C  S & P  5 0 0  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y   3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Consumer Staples — continued
Reynolds American		7,738	$	385
Sysco		4,828		232
Tyson Foods, Cl A		2,547		162
Walgreens Boots Alliance		7,910		612
Wal-Mart Stores		14,476		1,025
Whole Foods Market		3,302		107
				17,049
Energy — 6.9%
Anadarko Petroleum		4,470		232
Apache		3,539		202
Baker Hughes		3,884		180
Cabot Oil & Gas		3,804		91
Chesapeake Energy*#		4,760		21
Chevron		17,308		1,748
Cimarex Energy		795		93
Columbia Pipeline Group		3,031		77
Concho Resources*		1,195		145
ConocoPhillips		11,354		497
Devon Energy		4,541		164
Diamond Offshore Drilling		613		16
EOG Resources		4,893		398
EQT		1,338		98
Exxon Mobil		38,051		3,387
FMC Technologies*		2,104		57
Halliburton		7,918		334
Helmerich & Payne		970		59
Hess		2,351		141
Kinder Morgan		16,321		295
Marathon Oil		7,893		103
Marathon Petroleum		4,824		168
Murphy Oil		1,732		54
National Oilwell Varco		3,482		115
Newfield Exploration*		1,829		75
Noble Energy		3,682		132
Occidental Petroleum		7,031		530
ONEOK		1,863		81
Phillips 66		4,325		348
Pioneer Natural Resources		1,467		235
Range Resources		1,435		61
Schlumberger (Curacao)		12,767		974
Southwestern Energy*		3,063		42
Spectra Energy		5,773		184
Tesoro		1,203		94
Transocean (Switzerland)		3,087		30
Valero Energy		4,428		242
Williams		6,108		135
				11,838
Financials — 16.9%
Affiliated Managers Group*		504		87
Aflac		3,848		267
Allstate		3,470		234
American Express		7,694		506
American International Group		10,634		616
American Tower REIT		3,802		402
Ameriprise Financial		1,538		156
Aon PLC (United Kingdom)		2,547		278
Apartment Investment & Management, CL A REIT		1,052		45
Assurant		791		69

	Number of Shares		Value (000)
AvalonBay Communities REIT		1,196	$	215
Bank of America		95,757		1,416
BB&T		7,307		266
Berkshire Hathaway, Cl B*		17,107		2,404
BlackRock†		1,341		488
BNY Mellon		10,164		428
Boston Properties REIT		1,303		164
Capital One Financial		5,065		371
CBRE Group, Cl A*		2,715		81
Charles Schwab		10,958		335
Chubb (Switzerland)		4,236		536
Cincinnati Financial		1,415		98
Citigroup		27,396		1,276
Citizens Financial Group		4,890		115
CME Group		3,215		315
Comerica		1,601		75
Crown Castle International REIT		3,000		272
Digital Realty Trust REIT		1,355		129
Discover Financial Services		3,985		226
E*Trade Financial*		2,713		76
Equinix REIT		641		232
Equity Residential REIT		3,345		232
Essex Property Trust REIT		548		125
Extra Space Storage REIT		1,146		107
Federal Realty Investment Trust REIT		644		99
Fifth Third Bancorp		7,644		144
Franklin Resources		3,620		135
General Growth Properties REIT		5,594		150
Goldman Sachs Group		3,596		573
Hartford Financial Services Group		3,605		163
HCP REIT		3,857		127
Host Hotels & Resorts REIT		6,992		108
Huntington Bancshares		7,337		77
IntercontinentalExchange Group		1,091		296
Invesco (Bermuda)		3,894		122
Iron Mountain REIT		1,664		61
JPMorgan Chase		34,228		2,234
KeyCorp		7,848		101
Kimco Realty REIT		3,420		96
Legg Mason		962		33
Leucadia National		2,888		52
Lincoln National		2,337		107
Loews		2,643		107
M&T Bank		1,472		176
Macerich REIT		1,228		94
Marsh & McLennan		4,645		307
MetLife		10,126		461
Moody’s		1,678		166
Morgan Stanley		14,113		386
Nasdaq		1,030		68
Navient		3,850		53
Northern Trust		2,025		150
People’s United Financial		3,007		48
PNC Financial Services Group†		5,751		516
Principal Financial Group		2,459		110
Progressive		5,180		172
Prologis REIT		4,821		229
Prudential Financial		4,084		324
Public Storage REIT		1,333		338
Realty Income REIT		2,062		124
Regions Financial		12,392		122
S&P Global		2,457		275

See Notes to Financial Statements.

2

	Number of Shares		Value (000)
COMMON STOCKS — continued
Financials — continued
Simon Property Group REIT		2,766	$	547
SL Green Realty REIT		880		89
State Street		3,728		235
SunTrust Banks		4,698		206
Synchrony Financial*		7,866		245
T. Rowe Price Group		2,379		183
Torchmark		1,290		80
Travelers		2,832		323
U.S. Bancorp		15,174		650
UDR REIT		2,437		88
Unum Group		2,342		86
Ventas REIT		2,927		194
Visa, Cl A		17,658		1,394
Vornado Realty Trust REIT		1,552		148
Wells Fargo		42,746		2,168
Welltower REIT		3,255		224
Weyerhaeuser REIT		6,891		217
Willis Towers Watson PLC (Ireland)		1,301		167
XL Group PLC (Ireland)		2,724		94
Zions Bancorporation		1,378		39
				28,923
Healthcare — 14.5%
Abbott Laboratories		13,718		544
AbbVie		15,248		960
Aetna		3,246		368
Agilent Technologies		2,934		135
Alexion Pharmaceuticals*		2,153		325
Allergan PLC (Ireland)*		3,625		855
AmerisourceBergen		1,796		135
Amgen		7,020		1,109
Anthem		2,399		317
Baxalta		5,419		245
Baxter International		4,928		213
Becton Dickinson		1,938		323
Biogen*		2,085		604
Boston Scientific*		12,561		285
Bristol-Myers Squibb		15,819		1,134
C.R. Bard		669		146
Cardinal Health		3,079		243
Celgene*		7,250		765
Cerner*		2,534		141
Cigna		2,343		300
DaVita HealthCare Partners*		1,641		127
DENTSPLY SIRONA		2,232		139
Edwards Lifesciences*		2,033		200
Eli Lilly		9,500		713
Endo International PLC (Ireland)*		1,914		30
Express Scripts Holding*		6,270		474
Gilead Sciences		12,817		1,116
HCA Holdings*		2,928		228
Henry Schein*		745		129
Humana		1,369		236
Illumina*		1,366		198
Intuitive Surgical*		363		230
Johnson & Johnson		25,819		2,909
Laboratory Corporation of America Holdings*		831		106
Mallinckrodt PLC (Ireland)*		1,010		64
McKesson		2,089		383
Medtronic PLC (Ireland)		13,274		1,068
Merck		26,012		1,463

	Number of Shares		Value (000)
Mylan NV (Netherlands)*		3,815	$	165
Patterson		749		37
PerkinElmer		974		53
Perrigo PLC (Ireland)		1,289		123
Pfizer		55,666		1,932
Quest Diagnostics		1,356		105
Regeneron Pharmaceuticals*		696		278
St. Jude Medical		2,723		213
Stryker		2,915		324
Thermo Fisher Scientific		3,671		557
UnitedHealth Group		8,766		1,172
Universal Health Services, Cl B		822		111
Varian Medical Systems*		960		79
Vertex Pharmaceuticals*		2,168		202
Waters*		765		105
Zimmer Holdings		1,520		186
Zoetis		4,445		211
				24,813
Industrials — 9.9%
3M		5,596		942
Acuity Brands		413		107
Alaska Air Group		1,184		79
Allegion PLC (Ireland)		761		51
American Airlines Group		5,987		191
AMETEK		2,175		104
Boeing		5,763		727
C.H. Robinson Worldwide		1,469		110
Caterpillar		5,419		393
Cintas		962		91
CSX		9,161		242
Cummins		1,578		181
Danaher		5,393		530
Deere		2,857		235
Delta Air Lines		7,359		320
Dover		1,615		108
Dun & Bradstreet		426		54
Eaton PLC (Ireland)		4,274		263
Emerson Electric		5,621		292
Equifax		1,050		132
Expeditors International of Washington		1,869		91
Fastenal		2,382		110
FedEx		2,131		352
Flowserve		1,159		56
Fluor		1,454		77
General Dynamics		2,772		393
General Electric		84,550		2,556
Honeywell International		7,038		801
Illinois Tool Works		3,091		328
Ingersoll-Rand PLC (Ireland)		2,288		153
J.B. Hunt Transport Services		838		69
Jacobs Engineering Group*		1,096		56
Kansas City Southern		978		91
L-3 Communications Holdings		849		116
Lockheed Martin		2,474		584
Masco		2,829		92
Nielsen Holdings PLC (United Kingdom)		3,317		177
Norfolk Southern		2,836		238
Northrop Grumman		1,724		367
PACCAR		3,045		170
Parker Hannifin		1,319		151
Pentair PLC (Ireland)		1,625		98

See Notes to Financial Statements.

3

P N C  S & P  5 0 0  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value (000)
COMMON STOCKS — continued
Industrials — continued
Pitney Bowes		1,768	$	33
Quanta Services*		1,829		44
Raytheon		2,824		366
Republic Services		2,401		116
Robert Half International		1,220		51
Rockwell Automation		1,246		145
Rockwell Collins		1,328		117
Roper Industries		927		159
Ryder System		439		31
Snap-on		491		79
Southwest Airlines		5,968		253
Stanley Black & Decker		1,438		163
Stericycle*		762		75
Textron		2,434		93
Tyco International PLC (Ireland)		4,025		172
Union Pacific		7,746		652
United Continental Holdings*		3,243		146
United Parcel Service, Cl B		6,402		660
United Rentals*		854		59
United Technologies		7,199		724
Verisk Analytics*		1,459		116
W.W. Grainger#		555		127
Waste Management		3,696		225
Xylem		1,569		70
				16,954
Information Technology — 19.3%
Accenture PLC, Cl A (Ireland)		5,786		688
Activision Blizzard		4,404		173
Adobe Systems*		4,476		445
Akamai Technologies*		1,558		85
Alliance Data Systems*		518		115
Alphabet, Cl A*		2,716		2,034
Alphabet, Cl C*		2,757		2,028
Amphenol, Cl A		2,847		167
Analog Devices		2,870		168
Apple		51,641		5,157
Applied Materials		11,169		273
Autodesk*		1,844		107
Automatic Data Processing		4,315		379
Broadcom (Singapore)		3,381		522
CA		3,201		103
Cisco Systems		46,681		1,356
Citrix Systems*		1,415		120
Cognizant Technology Solutions, Cl A*		5,586		343
Corning		10,044		210
CSRA		1,387		34
eBay*		9,960		244
Electronic Arts*		2,981		229
EMC		17,870		499
F5 Networks*		662		73
Facebook, Cl A*		21,563		2,562
Fidelity National Information Services		2,607		194
First Solar*		524		26
Fiserv*		2,143		226
FLIR Systems		1,344		42
Harris		992		78
Hewlett Packard		16,703		309
HP		16,703		223
Intel		43,857		1,385
International Business Machines		8,095		1,245

	Number of Shares		Value (000)
Intuit		2,376	$	253
Juniper Networks		3,698		87
KLA-Tencor		1,550		113
Lam Research		1,455		120
Linear Technology		1,999		95
MasterCard, Cl A		9,097		872
Microchip Technology		1,666		86
Micron Technology*		9,799		125
Microsoft		73,131		3,876
Motorola Solutions		1,463		101
NetApp		3,021		77
NVIDIA		4,588		214
Oracle		29,019		1,167
Paychex		2,899		157
PayPal Holdings*		9,960		376
Qorvo*		1,345		69
QUALCOMM		13,823		759
Red Hat*		1,731		134
salesforce.com*		5,865		491
Seagate Technology PLC (Ireland)		2,946		66
Skyworks Solutions		1,686		113
Symantec		5,775		100
TE Connectivity (Switzerland)		3,364		202
Teradata*		1,458		41
Texas Instruments		9,283		563
Total System Services		1,356		73
VeriSign*		911		78
Western Digital		2,443		114
Western Union		4,346		85
Xerox (A)		10,216		102
Xilinx		2,294		109
Yahoo!*		8,008		304
				32,964
Materials — 2.7%
Air Products & Chemicals		1,674		239
Alcoa		11,000		102
Avery Dennison		902		67
Ball		1,360		98
CF Industries Holdings		2,163		60
Dow Chemical		10,342		531
E.I. du Pont de Nemours		8,060		527
Eastman Chemical		1,209		89
Ecolab		2,313		271
FMC		1,221		58
Freeport-McMoRan		10,914		121
Ingevity*		413		12
International Flavors & Fragrances		683		88
International Paper		3,793		160
LyondellBasell Industries NV, Cl A (Netherlands)		3,133		255
Martin Marietta Materials		561		106
Monsanto		4,044		455
Mosaic		2,800		71
Newmont Mining		4,936		160
Nucor		2,740		133
Owens-Illinois*		1,378		26
PPG Industries		2,495		269
Praxair		2,636		290
Sealed Air		1,629		76
Sherwin-Williams		761		221
Vulcan Materials		1,126		131

See Notes to Financial Statements.

4

	Number of Shares		Value (000)
COMMON STOCKS — continued
Materials — continued
WestRock		2,478	$	98
				4,714
Telecommunication Services — 2.6%
AT&T		56,576		2,215
CenturyLink		5,042		137
Frontier Communications		9,180		47
Level 3 Communications*		2,472		133
Verizon Communications		37,419		1,905
				4,437
Utilities — 3.2%
AES		5,794		64
AGL Resources		1,045		69
Ameren		2,185		108
American Electric Power		4,320		280
American Water Works		1,630		121
CenterPoint Energy		3,831		86
CMS Energy		2,283		95
Consolidated Edison		2,648		194
Dominion Resources		5,392		390
DTE Energy		1,537		139
Duke Energy		6,320		494
Edison International		2,933		210
Entergy		1,587		121
Eversource Energy		2,740		151
Exelon		8,457		290
FirstEnergy		3,770		124
NextEra Energy		4,157		499
NiSource		2,601		62
NRG Energy		2,851		47
PG&E		4,511		271
Pinnacle West Capital		1,012		74
PPL		5,819		224
Public Service Enterprise Group		4,547		204
SCANA		1,314		92
Sempra Energy		2,168		232
Southern		8,185		405
TECO Energy		1,983		55
WEC Energy Group		2,918		176
Xcel Energy		4,427		183
				5,460
Total Common Stocks (Cost $77,530)				168,630

	Number of Shares		Value (000)
MONEY MARKET FUND — 1.2%
PNC Government Money Market Fund, Class I Shares 0.080%† (A) (B)		1,963,624	$	1,964
Total Money Market Fund (Cost $1,964)				1,964
Total Investments Before Short-Term Investment Purchased with Collateral from Securities Loaned – 99.8% (Cost $79,494)				170,594
SHORT-TERM INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED — 0.4%
Affiliated Money Market Fund — 0.3%
PNC Government Money Market Fund, Class I Shares 0.080%† (B)		575,136		575
Money Market Fund — 0.1%
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class 0.250% (B)		72,545		73
Total Short-Term Investments Purchased With Collateral From Securities Loaned (Cost $648)‡				648
TOTAL INVESTMENTS — 100.2% (Cost $80,142)**				171,242
Other Assets & Liabilities – (0.2)%				(285	)
TOTAL NET ASSETS — 100.0%			$	170,957

* Non-income producing security.

**Aggregate cost for Federal income tax purposes is (000) $85,833.

Gross unrealized appreciation (000)	$	92,976
Gross unrealized depreciation (000)		(7,567	)
Net unrealized appreciation (000)	$	85,409

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

# Security fully or partially on loan. Total Value of Securities on Loan is $635 (000).

‡ See Note 9 in Notes to Financial Statements.

(A) All or a portion of the security has been segregated on the Fund’s books and records for open futures contracts.

(B) The rate quoted is the annualized seven-day effective yield of the fund at period end.

Futures Contracts:

Description	Number of Contracts		Notional Cost Amount (000)			Expiration Date		Unrealized Appreciation (000)
S&P 500® E-mini		10		$	1,003		06/17/16		$	44

Cash in the amount of $42,000 is held by the broker as collateral to cover initial margin requirements for the above open futures contracts (Long Positions).

Assets in the amount of $1,103,434 have been segregated on the Fund’s books and records.

See Notes to Financial Statements.

5

P N C  S & P  5 0 0  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Financial Statements).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	168,630		$	–		$	–		$	168,630
Money Market Fund			1,964			–			–			1,964
Short-Term Investments Purchased With Collateral From Securities Loaned			648			–			–			648
Total Assets - Investments in Securities		$	171,242		$	–		$	–		$	171,242
Other Financial Instruments
Futures Contracts		$	44		$	–		$	–		$	44
Total Assets - Other Financial Instruments		$	44		$	–		$	–		$	44

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value. As of May 31, 2016, such liabilities are categorized within the valuation hierarchy as follows:

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Liabilities:
Payable for collateral received for loaned securities		$	–		$	648		$	–		$	648
Total Liabilities - Collateral Received for Loaned Securities		$	–		$	648		$	–		$	648

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

6

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6  

	Number of Shares		Value     (000)
COMMON STOCKS — 97.2%
Consumer Discretionary — 12.9%
1-800-Flowers.com, Cl A*		212		$  2
Abercrombie & Fitch, Cl A		349		7
AMC Entertainment Holdings, Cl A		144		4
American Axle & Manufacturing Holdings*		447		7
American Eagle Outfitters		1,032		16
American Public Education*		131		4
America’s Car-Mart*		76		2
Apollo Education Group*		610		6
Arctic Cat		95		1
Asbury Automotive Group*		151		8
Ascena Retail Group*		856		6
Ascent Capital Group, Cl A*		132		2
Barnes & Noble		271		3
Barnes & Noble Education*		102		1
Beazer Homes USA*		171		1
bebe Stores*		2,234		1
Belmond, Cl A (Bermuda)*		492		5
Big 5 Sporting Goods		133		1
Big Lots		288		15
Biglari Holdings*		8		3
BJ’s Restaurants*		133		6
Bloomin’ Brands		681		13
Blue Nile*		84		2
Bob Evans Farms		132		6
Bojangles’*		90		2
Boyd Gaming*		475		9
Bright Horizons Family Solutions*		196		13
Buckle		124		3
Buffalo Wild Wings*		100		15
Build-A-Bear Workshop*		108		1
Burlington Stores*		408		25
Caesars Entertainment*		378		3
CalAtlantic Group		432		16
Caleres		214		5
Callaway Golf		515		5
Cambium Learning Group*		220		1
Capella Education		74		4
Career Education*		532		3
Carmike Cinemas*		157		5
Carriage Services		121		3
Cato, Cl A		160		6
Cavco Industries*		48		5
Cheesecake Factory		288		14
Chico’s FAS		683		7
Children’s Place		115		8
Christopher & Banks*		198		–
Churchill Downs		75		9
Chuy’s Holdings*		64		2
ClubCorp Holdings		203		2
Columbia Sportswear		161		9
Conn’s*		165		2
Container Store Group*		95		1
Cooper Tire & Rubber		340		11
Cooper-Standard Holding*		85		7
Core-Mark Holding		134		11
Cracker Barrel Old Country Store		108		16
Crocs*		317		3
CSS Industries		70		2
Culp		29		1
Cumulus Media, Cl A*		2,405		1
Dana Holding		921		11

	Number of Shares		Value     (000)
Dave & Buster’s Entertainment*		143		$  6
Deckers Outdoor*		193		10
Del Frisco’s Restaurant Group*		181		3
Denny’s*		491		5
DeVry Education Group		312		6
Diamond Resorts International*		263		6
DineEquity		99		8
Dorman Products*		149		8
DreamWorks Animation SKG, Cl A*		439		18
Drew Industries		141		11
E.W. Scripps, Cl A*		328		6
Eldorado Resorts*		228		3
Entercom Communications, Cl A		212		3
Entravision Communications, Cl A		432		3
Eros International PLC (Isle of Man)*		221		3
Ethan Allen Interiors		171		6
EVINE Live*		331		1
Express*		476		7
Federal-Mogul Holdings*		190		2
Fiesta Restaurant Group*		116		3
Finish Line, Cl A		304		6
Five Below*		316		13
Flexsteel Industries		19		1
Fox Factory Holding*		115		2
Francesca’s Holdings*		280		3
Fred’s, Cl A		246		4
FTD*		82		2
Genesco*		128		8
Gentherm*		209		8
G-III Apparel Group*		212		8
Global Eagle Entertainment*		184		1
Grand Canyon Education*		278		12
Gray Television*		388		5
Green Brick Partners*		181		1
Group 1 Automotive		115		7
Guess?		303		5
Haverty Furniture		73		1
Helen of Troy (Bermuda)*		165		17
Hemisphere Media Group*		124		1
Hibbett Sports*		149		5
Horizon Global*		103		1
Houghton Mifflin Harcourt*		635		11
Hovnanian Enterprises, Cl A*		760		1
HSN		191		10
Iconix Brand Group*		362		3
Installed Building Products*		88		3
International Speedway, Cl A		171		6
Interval Leisure Group		573		8
iRobot*		176		7
Isle of Capri Casinos*		173		3
Jack in the Box		199		17
JAKKS Pacific*		196		1
Johnson Outdoors, Cl A		57		1
K12*		250		3
KB Home		464		6
Kirkland’s*		113		1
Krispy Kreme Doughnuts*		417		9
La Quinta Holdings*		485		6
Lands’ End*		46		1
La-Z-Boy		308		8
LGI Homes*		95		3
Libbey		138		2

See Notes to Financial Statements.

1

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Consumer Discretionary — continued
LifeLock*		492		$  6
Lithia Motors, Cl A		116		10
Loral Space & Communications*		76		3
Lumber Liquidators Holdings*		209		3
M/I Homes*		154		3
Malibu Boats*		142		2
MarineMax*		171		3
Marriott Vacations Worldwide		139		8
Mattress Firm Holding*		95		3
MDC Holdings		246		6
MDC Partners, Cl A (Canada)		246		4
Media General*		573		10
Meredith		214		11
Meritage Homes*		218		8
Metaldyne Performance Group		95		2
Modine Manufacturing*		214		2
Monarch Casino & Resort*		92		2
Monro Muffler Brake		190		12
Morgans Hotel Group*		76		–
Motorcar Parts of America*		117		3
Movado Group		113		2
National CineMedia		381		6
Nautilus*		209		4
New Media Investment Group		274		5
New York Times, Cl A		778		9
Nexstar Broadcasting Group, Cl A		184		10
Nutrisystem		146		4
Ollie’s Bargain Outlet Holdings*		85		2
Outerwall		113		5
Overstock.com*		102		2
Oxford Industries		69		4
Papa John’s International		165		10
Papa Murphy’s Holdings*		112		1
Penn National Gaming*		486		8
Perry Ellis International*		30		1
PetMed Express		149		3
Pier 1 Imports		626		3
Pinnacle Entertainment*		344		4
Planet Fitness, Cl A*		128		2
Pool		244		22
Popeyes Louisiana Kitchen*		142		8
Reading International, Cl A*		156		2
Red Robin Gourmet Burgers*		63		3
Regis*		253		3
Rent-A-Center		245		3
Restoration Hardware Holdings*		183		6
Ruby Tuesday*		181		1
Ruth’s Hospitality Group		246		4
Saga Communications, Cl A		38		2
Scholastic		171		7
Scientific Games, Cl A*		330		3
SeaWorld Entertainment		340		6
Select Comfort*		304		7
Shake Shack, Cl A*		43		2
Shoe Carnival		113		3
Shutterfly*		210		10
Sinclair Broadcast Group, Cl A		382		12
Smith & Wesson Holding*		325		8
Sonic		292		9
Sonic Automotive, Cl A		220		4
Sotheby’s		330		10
Speedway Motorsports		106		2

	Number of Shares		Value     (000)
Stage Stores		205		$      1
Standard Motor Products		133		5
Stein Mart		111		1
Steven Madden*		328		11
Stoneridge*		87		1
Strattec Security		6		–
Strayer Education*		44		2
Sturm Ruger		113		7
Superior Industries International		151		4
Tailored Brands		285		4
Taylor Morrison Home, Cl A*		212		3
Tenneco*		328		18
Texas Roadhouse		384		17
Tile Shop Holdings*		194		4
Tilly’s, Cl A*		120		1
Time		645		10
Tower International		146		3
Townsquare Media, Cl A*		111		1
TRI Pointe Group*		803		9
Tribune Publishing		219		3
Tuesday Morning*		285		2
Tumi Holdings*		341		9
Unifi*		108		3
Universal Electronics*		92		6
Vail Resorts		203		27
Vera Bradley*		149		2
Vince Holding*		284		2
Vitamin Shoppe*		165		5
VOXX International*		153		1
Weight Watchers International*		190		3
William Lyon Homes, Cl A*		105		2
Winmark		22		2
Winnebago Industries		190		4
Wolverine World Wide		601		11
World Wrestling Entertainment, Cl A		203		4
ZAGG*		238		1
Zumiez*		137		2
				1,216
Consumer Staples — 3.3%
Alico		34		1
Andersons		144		5
B&G Foods		324		14
Boston Beer, Cl A*		45		7
Calavo Growers		95		5
Cal-Maine Foods		171		8
Casey’s General Stores		207		25
Central Garden and Pet, Cl A*		268		5
Chefs’ Warehouse*		67		1
Coca-Cola Bottling		23		3
Darling Ingredients*		899		14
Dean Foods		546		10
Elizabeth Arden*		95		1
Fresh Del Monte Produce (Cayman Islands)		205		11
HRG Group*		374		5
Ingles Markets, Cl A		54		2
Inter Parfums		113		3
J&J Snack Foods		75		8
John B Sanfilippo & Son*		56		3
Lancaster Colony		107		13
Landec*		83		1
Medifast		91		3

See Notes to Financial Statements.

2

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Consumer Staples — continued
MGP Ingredients		84		$  3
Natural Health Trends		62		2
Nutraceutical International*		74		2
Omega Protein*		149		3
Post Holdings*		326		25
PriceSmart		98		9
Sanderson Farms		132		12
Seaboard*		2		6
Snyder’s-Lance		361		11
SpartanNash		234		7
SUPERVALU*		1,320		6
Tootsie Roll Industries		126		4
TreeHouse Foods*		301		28
United Natural Foods*		257		9
Universal		134		7
USANA Health Sciences*		37		4
Vector Group		426		9
Village Super Market, Cl A		67		2
WD-40		86		9
Weis Markets		76		4
				310
Energy — 2.6%
Abraxas Petroleum*		1,240		1
Alon USA Energy		74		1
Approach Resources*		480		1
Archrock		340		3
Atwood Oceanics		471		5
Basic Energy Services*		201		–
Bill Barrett*		372		3
Bonanza Creek Energy*		187		–
Bristow Group		209		3
C&J Energy Services (Bermuda)*		285		–
Callon Petroleum*		587		7
CARBO Ceramics		115		1
Carrizo Oil & Gas*		302		12
Clayton Williams Energy*		37		1
Clean Energy Fuels*		437		1
Cloud Peak Energy*		784		2
Contango Oil & Gas*		61		1
Delek US Holdings		349		5
DHT Holdings (Marshall Islands)		368		2
Energy XXI (Bermuda)		551		–
Era Group*		133		1
EXCO Resources*		1,389		1
Exterran*		170		2
Forum Energy Technologies*		387		6
Frontline (Bermuda)		208		2
GasLog (Bermuda)		279		3
Gastar Exploration*		131		–
Gener8 Maritime (Marshall Islands)*		200		1
Geospace Technologies*		113		2
Green Plains		239		4
Gulfmark Offshore, Cl A*		326		1
Halcon Resources*		276		–
Hallador Energy		199		1
Helix Energy Solutions Group*		650		5
Hornbeck Offshore Services*		217		2
ION Geophysical*		130		1
Key Energy Services*		770		–
Matador Resources*		423		10

	Number of Shares		Value     (000)
Matrix Service*		100		$  2
McDermott International (Panama)*		1,441		7
Natural Gas Services Group*		95		2
Navios Maritime Acquisition (Marshall Islands)		842		2
Newpark Resources*		549		3
Nordic American Tankers (Bermuda)		471		7
North Atlantic Drilling (Bermuda)*		235		1
Northern Oil and Gas*		263		1
Oasis Petroleum*		922		9
Oil States International*		302		10
Pacific Ethanol*		203		1
Panhandle Oil and Gas, Cl A		137		2
Par Pacific Holdings*		41		1
Parker Drilling*		760		2
Parsley Energy, Cl A*		651		17
PDC Energy*		241		14
Penn Virginia*		487		–
PHI*		107		2
Pioneer Energy Services*		402		1
Renewable Energy Group*		159		1
REX American Resources*		47		3
Rex Energy*		1,247		1
RigNet*		76		1
RSP Permian*		340		11
Sanchez Energy*		361		3
Scorpio Tankers (Marshall Islands)		859		5
SEACOR Holdings*		98		6
SemGroup,ClA		247		8
Seventy Seven Energy*		4,372		–
Ship Finance International (Bermuda)		365		6
Stone Energy*		304		–
Synergy Resources*		677		4
Teekay Tankers, Cl A (Marshall Islands)		530		2
Tesco (Canada)		209		2
TETRA Technologies*		295		2
Triangle Petroleum*		1,802		–
U.S. Silica Holdings		328		9
Ultra Petroleum (Canada)*		1,024		1
W&T Offshore*		234		–
Western Refining		358		8
				248
Financials — 25.8%
1st Source		109		4
Acadia Realty Trust REIT		376		13
AG Mortgage Investment Trust REIT		206		3
Agree Realty REIT		133		6
Alexander & Baldwin		285		11
Alexander’s REIT		13		5
Altisource Asset Management (United States Virgin Islands)*		41		1
Altisource Portfolio Solutions SA (Luxembourg)*		99		3
Altisource Residential REIT		292		3
Ambac Financial Group*		275		5
American Assets Trust REIT		209		8
American Capital Mortgage Investment REIT		311		5
American Equity Investment Life Holding		484		8
Ameris Bancorp		171		5
AMERISAFE		117		7
Ames National		85		2
Anworth Mortgage Asset REIT		746		3
Apollo Commercial Real Estate Finance REIT		294		5

See Notes to Financial Statements.

3

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Financials — continued
Ares Commercial Real Estate REIT		162		$  2
Argo Group International Holdings (Bermuda)		188		10
Arlington Asset Investment, Cl A		113		1
ARMOUR Residential REIT		227		4
Arrow Financial		95		3
Ashford Hospitality Trust REIT		308		2
Associated Capital Group, Cl A*		37		1
Astoria Financial		549		9
Banc of California		281		6
BancFirst		48		3
Banco Latinoamericano de Comercio
Exterior SA, Cl E (Panama)		190		5
Bancorp*		227		2
BancorpSouth		568		14
Bank Mutual		361		3
Bank of Marin Bancorp		47		2
Bank of the Ozarks		409		16
BankFinancial		168		2
Banner		121		5
BBCN Bancorp		494		8
Beneficial Bancorp*		501		7
Berkshire Hills Bancorp		171		5
BGC Partners, Cl A		914		8
Blue Hills Bancorp		99		1
BNC Bancorp		145		3
BofI Holding*		314		6
Boston Private Financial Holdings		511		6
Bridge Bancorp		93		3
Brookline Bancorp		475		6
Bryn Mawr Bank		95		3
C1 Financial*		62		1
Calamos Asset Management, Cl A		11		–
Camden National		58		2
Capital Bank Financial, Cl A		137		4
Capital City Bank Group		106		2
Capitol Federal Financial		848		12
Capstead Mortgage REIT		572		6
Cardinal Financial		209		5
CareTrust REIT		271		4
Cash America International		159		6
Cathay General Bancorp		475		15
Cedar Realty Trust REIT		531		4
CenterState Banks		246		4
Central Pacific Financial		127		3
Century Bancorp, Cl A		37		2
Charter Financial		158		2
Chatham Lodging Trust REIT		197		4
Chemical Financial		190		7
Chesapeake Lodging Trust REIT		315		8
Citizens*		340		3
Citizens & Northern		102		2
City Holding		104		5
Clifton Bancorp		194		3
CNB Financial		127		2
CNO Financial Group		1,051		21
CoBiz Financial		267		3
Cohen & Steers		120		5
Colony Capital, Cl A REIT		622		11
Colony Starwood Homes REIT		197		5
Columbia Banking System		324		10
Community Bank System		246		10

	Number of Shares		Value     (000)
Community Trust Bancorp		104		$  4
ConnectOne Bancorp		165		3
Consolidated-Tomoka Land		38		2
CoreSite Realty REIT		133		10
Cousins Properties REIT		1,202		13
Cowen Group, Cl A*		811		3
Crawford,Cl B		291		2
CU Bancorp*		95		2
CubeSmart REIT		984		31
Customers Bancorp*		171		5
CVB Financial		568		10
CyrusOne REIT		417		21
CYS Investments REIT		955		8
DCT Industrial Trust REIT		475		20
Diamond Hill Investment Group*		21		4
DiamondRock Hospitality REIT*		1,031		9
Dime Community Bancshares		227		4
DuPont Fabros Technology REIT		364		15
Dynex Capital REIT		399		3
Eagle Bancorp*		176		9
Easterly Government Properties		117		2
EastGroup Properties REIT		183		12
Education Realty Trust REIT		368		16
eHealth*		108		1
EMC Insurance Group		72		2
Employers Holdings		205		6
Encore Capital Group*		173		5
Enova International*		265		2
Enstar Group (Bermuda)*		52		8
Enterprise Financial Services		134		4
EPR Properties REIT		322		23
Equity One REIT		414		12
Essent Group (Bermuda)*		339		7
EverBank Financial		543		8
Evercore Partners, Cl A		175		9
Ezcorp, Cl A*		390		3
Farmers Capital Bank		68		2
FBL Financial Group, Cl A		67		4
FCB Financial Holdings, Cl A*		175		6
Federal Agricultural Mortgage, Cl C		76		3
Federated National Holding		102		2
FelCor Lodging Trust REIT		798		5
Fidelity & Guaranty Life		99		2
Fidelity Southern		60		1
Fifth Street Asset Management		216		1
Financial Engines		300		8
Financial Institutions		113		3
First American Financial		606		23
First Bancorp		149		3
First Bancorp		98		2
First BanCorp (Puerto Rico)*		708		3
First Busey		177		4
First Business Financial Services		77		2
First Cash Financial Services		171		7
First Commonwealth Financial		566		5
First Community Bancshares		142		3
First Connecticut Bancorp		142		2
First Defiance Financial		68		3
First Financial		89		3
First Financial Bancorp		351		7
First Financial Bankshares		381		13
First Industrial Realty Trust REIT		645		16

See Notes to Financial Statements.

4

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Financials — continued
First Interstate BancSystem, Cl A		113		$  3
First Merchants		230		6
First Midwest Bancorp		475		9
First NBC Bank Holding*		74		1
First of Long Island		87		3
First Potomac Realty Trust REIT		241		2
FirstMerit		942		21
Flagstar Bancorp*		149		4
Flushing Financial		205		4
FNB		1,165		16
Forestar Group*		227		3
Franklin Street Properties REIT		568		6
FRP Holdings*		58		2
Fulton Financial		916		13
GAIN Capital Holdings		69		–
GAMCO Investors, Cl A		37		1
GEO Group REIT		424		14
German American Bancorp		95		3
Getty Realty REIT		167		3
Glacier Bancorp		437		12
Global Indemnity PLC*		71		2
Government Properties Income Trust REIT		362		7
Gramercy Property Trust REIT		2,382		21
Great Southern Bancorp		38		1
Great Western Bancorp		250		9
Green Dot, Cl A*		209		5
Greenhill		129		3
Greenlight Capital Re (Cayman Islands)*		175		4
Guaranty Bancorp		133		2
Hallmark Financial Services*		142		1
Hancock Holding		446		12
Hanmi Financial		209		5
HCI Group		67		2
Healthcare Realty Trust REIT		567		18
Heartland Financial USA		113		4
Heritage Commerce		63		1
Heritage Financial		199		4
Heritage Insurance Holdings		82		1
Heritage Oaks Bancorp		198		2
Hersha Hospitality Trust REIT		218		4
HFF, Cl A		209		7
Highwoods Properties REIT		531		26
Hilltop Holdings*		444		9
Hingham Institution For Savings		13		2
Home BancShares		324		14
Horace Mann Educators		247		8
Houlihan Lokey		96		2
Hudson Pacific Properties REIT		390		11
IBERIABANK		194		12
Impac Mortgage Holdings*		84		1
Independence Holding		80		1
Independent Bank		172		3
Independent Bank		149		7
Independent Bank Group		68		3
Infinity Property & Casualty		76		6
International Bancshares		328		9
INTL. FCStone*		109		3
Invesco Mortgage Capital REIT		667		10
Investment Technology Group		217		4
Investors Bancorp		1,858		22
Investors Real Estate Trust REIT		664		4
iStar REIT*		531		5

	Number of Shares		Value     (000)
James River Group Holdings (Bermuda)		86		$  3
Janus Capital Group		863		13
JG Wentworth, Cl A*		448		–
Kansas City Life Insurance		34		1
KCG Holdings, Cl A*		244		3
Kearny Financial		582		8
Kemper		243		8
Kennedy-Wilson Holdings		467		10
Kite Realty Group Trust		496		13
Lakeland Bancorp		279		3
Lakeland Financial		113		6
LaSalle Hotel Properties REIT		587		14
LegacyTexas Financial Group		246		7
LendingTree*		25		2
Lexington Realty Trust REIT		1,131		11
LTC Properties REIT		217		10
Maiden Holdings (Bermuda)		345		5
MainSource Financial Group		149		3
Marcus & Millichap*		105		3
MarketAxess Holdings		209		29
Marlin Business Services		72		1
MB Financial		386		14
MBIA*		728		5
Medical Properties Trust REIT		1,350		20
Medley Management, Cl A		140		1
Mercantile Bank		120		3
Meridian Bancorp		234		4
MGIC Investment*		1,963		14
MidWestOne Financial Group		65		2
Moelis, Cl A		108		3
Monmouth Real Estate Investment REIT		340		4
National Bank Holdings, Cl A		200		4
National Bankshares		61		2
National General Holdings		246		5
National Health Investors REIT		219		15
National Storage Affiliates Trust		163		3
National Western Life Group, Cl A		16		3
Navigators Group*		68		6
NBT Bancorp		267		8
Nelnet, Cl A		148		5
New Residential Investment REIT		1,180		16
New York Mortgage Trust REIT		500		3
New York REIT		919		8
NewStar Financial*		190		2
Northfield Bancorp		311		5
Northwest Bancshares		589		9
Ocwen Financial*		678		1
OFG Bancorp (Puerto Rico)		306		3
Old National Bancorp		787		10
OM Asset Management PLC (United Kingdom)		175		3
One Liberty Properties REIT		102		2
OneBeacon Insurance Group, Cl A (Bermuda)		69		1
Oppenheimer Holdings, Cl A		10		–
Opus Bank		57		2
Oritani Financial		281		5
Park National		76		7
Park Sterling		361		3
Parkway Properties REIT		431		8
Pebblebrook Hotel Trust REIT		409		10
Penns Woods Bancorp		40		2
Pennsylvania Real Estate Investment Trust REIT		340		7
PennyMac Financial Services, Cl A*		120		2

See Notes to Financial Statements.

5

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Financials — continued
PennyMac Mortgage Investment Trust REIT		437		$  7
People’s Utah Bancorp		58		1
PHH*		268		4
Physicians Realty Trust		787		15
PICO Holdings*		149		1
Pinnacle Financial Partners		214		11
Piper Jaffray*		89		4
Potlatch REIT		235		8
PRA Group*		288		8
Preferred Apartment Communities		180		3
Preferred Bank		95		3
Primerica		279		16
PrivateBancorp		412		18
Prosperity Bancshares		407		22
Provident Financial Services		381		8
PS Business Parks REIT		113		11
Pzena Investment Management, Cl A		176		2
QTS Realty Trust, Cl A REIT		166		9
Radian Group		1,077		13
RAIT Financial Trust REIT		746		2
Ramco-Gershenson Properties Trust REIT		417		8
RCS Capital, Cl A* (A)		2,337		–
RE/MAX Holdings, Cl A		87		4
Redwood Trust REIT		503		7
Regional Management*		102		2
Renasant		238		8
Resource Capital REIT		134		2
Retail Opportunity Investments REIT		581		12
Rexford Industrial Realty		402		8
RLI		245		16
RLJ Lodging Trust REIT		719		15
RMR Group, Cl A		67		2
Rouse Properties REIT		243		4
Ryman Hospitality Properties REIT		252		12
S&T Bancorp		162		4
Sabra Health Care REIT		317		7
Safeguard Scientifics*		149		2
Safety Insurance Group		88		5
Sandy Spring Bancorp		171		5
Saul Centers REIT		58		3
Seacoast Banking Corp of Florida*		176		3
Select Income REIT		337		8
Selective Insurance Group		326		12
ServisFirst Bancshares		145		8
Sierra Bancorp		115		2
Simmons First National, Cl A		143		7
South State		144		10
Southside Bancshares		184		5
Southwest Bancorp		147		2
Sovran Self Storage REIT		222		24
St. Joe*		361		6
STAG Industrial REIT		336		7
State Bank Financial		227		5
Sterling Bancorp		699		12
Stewart Information Services		106		4
Stifel Financial*		381		14
Stock Yards Bancorp		142		4
Stonegate Bank		83		3
STORE Capital REIT		253		6
Summit Hotel Properties REIT		555		6
Sun Communities REIT		300		21
Sunstone Hotel Investors REIT		1,209		15

	Number of Shares		Value     (000)
Talmer Bancorp, Cl A		329		$    7
Tejon Ranch*		95		2
Terreno Realty		273		7
Territorial Bancorp		72		2
Texas Capital Bancshares*		270		14
Third Point Reinsurance (Bermuda)*		383		4
Tompkins Financial		95		6
Towne Bank		287		6
TriCo Bancshares		149		4
TriState Capital Holdings*		201		3
Triumph Bancorp*		123		2
TrustCo Bank		645		4
Trustmark		399		10
UMB Financial		221		13
Umpqua Holdings		1,191		19
Union Bankshares		274		7
United Bankshares		397		16
United Community Banks		285		6
United Community Financial		423		3
United Development Funding IV REIT (A) (B)		204		1
United Financial Bancorp		336		4
United Fire Group		135		6
United Insurance Holdings		136		2
Universal Health Realty Income Trust REIT		84		4
Universal Insurance Holdings		203		4
Univest Corporation of Pennsylvania		133		3
Urban Edge Properties REIT		520		14
Urstadt Biddle Properties, Cl A REIT		166		4
Virtu Financial, Cl A		62		1
Virtus Investment Partners		37		3
Walker & Dunlop*		168		4
Walter Investment Management*		227		1
Washington Federal		542		14
Washington Real Estate Investment Trust REIT		412		12
Washington Trust Bancorp		95		4
Waterstone Financial		197		3
Webster Financial		518		20
WesBanco		184		6
West Bancorporation		136		3
Westamerica Bancorporation		161		8
Western Alliance Bancorp*		494		19
Western Asset Mortgage Capital REIT		158		1
Westwood Holdings Group		48		3
Wilshire Bancorp		456		5
Wintrust Financial		263		14
WisdomTree Investments		633		8
World Acceptance*		55		2
WSFS Financial		189		7
Yadkin Financial		206		5
				2,427
Healthcare — 13.3%
Abaxis		139		6
ABIOMED*		234		23
ACADIA Pharmaceuticals*		448		16
Acceleron Pharma*		115		4
Accuray*		511		3
Aceto		126		3
Achillion Pharmaceuticals*		637		6
Acorda Therapeutics*		261		7
Adamas Pharmaceuticals*		62		1
Adeptus Health, Cl A*		45		3

See Notes to Financial Statements.

6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Healthcare — continued
Aduro Biotech*		32		$  –
Adverum Biotechnologies*		50		–
Aegerion Pharmaceuticals*		204		–
Agenus*		397		2
Air Methods*		227		8
Albany Molecular Research*		84		1
Alder Biopharmaceuticals*		123		4
Almost Family*		57		2
AMAG Pharmaceuticals*		215		5
Amedisys*		176		9
AMN Healthcare Services*		285		11
Amphastar Pharmaceuticals*		104		2
Amsurg*		301		23
Anacor Pharmaceuticals*		233		23
Analogic		76		6
AngioDynamics*		190		2
ANI Pharmaceuticals*		63		3
Anika Therapeutics*		95		5
Antares Pharma*		675		1
Ardelyx*		82		1
Arena Pharmaceuticals*		1,299		2
ARIAD Pharmaceuticals*		987		9
Array BioPharma*		781		3
Arrowhead Pharmaceuticals*		294		2
Atara Biotherapeutics*		92		2
AtriCure*		108		2
Atrion		10		4
BioCryst Pharmaceuticals*		301		1
BioDelivery Sciences International*		138		–
BioScrip*		362		1
BioSpecifics Technologies*		6		–
Calithera Biosciences*		5		–
Cambrex*		189		9
Cantel Medical		204		14
Cardiovascular Systems*		139		2
Catalent*		494		14
Celldex Therapeutics*		540		2
Cempra*		148		3
Cepheid*		407		11
Cerus*		638		4
Chemed		99		13
ChemoCentryx*		166		1
Chimerix*		207		1
Civitas Solutions*		30		1
Clovis Oncology*		142		2
Computer Programs & Systems		76		3
Concert Pharmaceuticals*		28		–
CONMED		166		7
Connecture*		72		–
Corcept Therapeutics*		429		3
CorVel*		65		3
Cross Country Healthcare*		227		3
CryoLife		89		1
CTI BioPharma*		961		–
Cynosure, Cl A*		144		7
Depomed*		356		7
Diplomat Pharmacy*		223		7
Dyax* (A) (B)		828		1
Dynavax Technologies*		160		3
Eagle Pharmaceutical*		54		3
Editas Medicine*		59		2
Emergent BioSolutions*		187		8

	Number of Shares		Value     (000)
Enanta Pharmaceuticals*		106		$  3
Endocyte*		189		1
Endologix*		399		5
Ensign Group		253		5
Esperion Therapeutics*		71		1
Exact Sciences*		479		3
Exactech*		76		2
ExamWorks Group*		201		7
Exelixis*		1,262		8
FibroGen*		282		5
Five Prime Therapeutics*		141		6
Fluidigm*		184		2
Genesis Healthcare*		67		–
GenMark Diagnostics*		229		2
Genomic Health*		124		3
Geron*		893		3
Globus Medical, Cl A*		390		9
Greatbatch*		116		4
Haemonetics*		304		9
Halozyme Therapeutics*		549		6
Halyard Health*		230		7
HealthEquity*		219		6
HealthSouth		521		21
HealthStream*		133		3
Healthways*		218		3
HeartWare International*		95		3
HMS Holdings*		510		8
ICU Medical*		84		9
Idera Pharmaceuticals*		227		–
Immune Design*		76		1
ImmunoGen*		531		3
Immunomedics*		714		3
Impax Laboratories*		417		14
INC Research Holdings, Cl A*		87		4
Infinity Pharmaceuticals*		336		2
Innoviva		479		5
Inogen*		67		3
Inovio Pharmaceuticals*		466		5
Insmed*		282		3
Insulet*		324		10
Insys Therapeutics*		168		3
Integra LifeSciences Holdings*		148		11
Intersect ENT*		103		1
Intra-Cellular Therapies*		131		5
Invacare		224		2
Ironwood Pharmaceuticals*		663		8
K2M Group Holdings*		87		1
Keryx Biopharmaceuticals*		501		3
Kindred Healthcare		427		5
Kite Pharma*		176		9
La Jolla Pharmaceutical*		31		1
Landauer		67		3
Lannett*		172		4
LeMaitre Vascular		113		2
Lexicon Pharmaceuticals*		244		3
LHC Group*		54		2
Ligand Pharmaceuticals*		103		12
LivaNova PLC (United Kingdom)*		232		11
Luminex*		271		6
MacroGenics*		139		4
Magellan Health*		143		9
MannKind*		1,198		1

See Notes to Financial Statements.

7

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Healthcare — continued
Masimo*		256		$13
Medicines*		381		14
Medidata Solutions*		314		14
Meridian Bioscience		246		5
Merit Medical Systems*		285		5
Merrimack Pharmaceuticals*		602		4
MiMedx Group*		675		5
Molina Healthcare*		200		10
Momenta Pharmaceuticals*		336		4
Myriad Genetics*		391		13
National HealthCare		68		4
National Research, Cl A		115		2
Natus Medical*		198		6
Nektar Therapeutics*		759		12
Neogen*		214		11
NeoGenomics*		387		3
Neurocrine Biosciences*		473		24
Nevro*		89		6
NewLink Genetics*		148		2
Nobilis Health (Canada)*		422		1
Novavax*		1,481		9
NuVasive*		270		15
Nuvectra*		139		1
NxStage Medical*		383		7
Omeros*		224		3
Omnicell*		221		7
Ophthotech*		137		7
OraSure Technologies*		409		3
Orexigen Therapeutics*		859		–
Orthofix International NV (Curacao)*		128		6
Osiris Therapeutics*		198		1
Otonomy*		49		1
OvaScience*		116		1
Owens & Minor		367		14
Pacific Biosciences of California*		380		4
Pacira Pharmaceuticals*		201		9
PAREXEL International*		309		19
PDL BioPharma		1,091		4
Penumbra*		40		2
Pernix Therapeutics Holdings*		551		–
Pfenex*		126		1
PharMerica*		190		5
Phibro Animal Health, Cl A		62		1
PRA Health Sciences*		124		6
Press Ganey Holdings*		80		3
Prestige Brands Holdings*		303		16
Progenics Pharmaceuticals*		562		3
Prothena PLC (Ireland)*		187		9
Providence Service*		80		4
PTC Therapeutics*		194		2
Quality Systems		316		4
Quidel*		201		3
Radius Health*		160		6
RadNet*		307		2
Raptor Pharmaceutical*		389		2
REGENXBIO*		52		1
Relypsa*		200		4
Repligen*		194		5
Retrophin*		163		3
Rigel Pharmaceuticals*		745		2
Rockwell Medical*		285		3
RTI Biologics*		501		2

	Number of Shares		Value     (000)
Sage Therapeutics*		75		$    2
Sagent Pharmaceuticals*		106		1
Sangamo BioSciences*		432		3
Sarepta Therapeutics*		257		5
SciClone Pharmaceuticals*		328		5
SeaSpine Holdings*		48		1
Select Medical Holdings*		638		8
Sequenom*		1,108		1
Sientra*		159		1
Spark Therapeutics*		54		3
Spectranetics*		257		5
STAAR Surgical*		246		1
STERIS PLC (United Kingdom)		470		33
Sucampo Pharmaceuticals, Cl A*		189		2
Supernus Pharmaceuticals*		224		4
Surgical Care Affiliates*		136		6
SurModics*		106		2
Synergy Pharmaceuticals*		337		1
Synta Pharmaceuticals*		2,549		1
Team Health Holdings*		409		20
Teligent*		99		1
TESARO*		133		6
TG Therapeutics*		210		2
TherapeuticsMD*		694		6
Theravance Biopharma*		192		4
Threshold Pharmaceuticals*		2,415		1
Tobira Therapeutics*		68		1
Triple-S Management, Cl B (Puerto Rico)*		150		3
Trupanion*		139		2
U.S. Physical Therapy		84		5
Ultragenyx Pharmaceutical*		200		15
Unilife*		61		–
Universal American*		314		3
Utah Medical Products		35		2
Vascular Solutions*		120		5
Verastem*		718		1
VIVUS*		204		–
Vocera Communications*		206		2
WellCare Health Plans*		249		25
West Pharmaceutical Services		399		30
Wright Medical Group NV (Netherlands)*		455		9
XenoPort*		436		3
XOMA*		467		–
Zeltiq Aesthetics*		193		6
ZIOPHARM Oncology*		581		5
Zogenix*		80		1
				1,245
Industrials — 13.0%
AAON		263		7
AAR		244		6
ABM Industries		340		12
Acacia Research		218		1
ACCO Brands*		729		7
Accuride*		681		1
Actuant, Cl A		354		10
Advanced Drainage Systems		153		4
Advisory Board*		229		8
Aegion*		243		5
Aerojet Rocketdyne Holdings*		381		7
Aerovironment*		116		3
Aircastle (Bermuda)		390		8

See Notes to Financial Statements.

8

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Industrials — continued
Alamo Group		47		$  3
Albany International, Cl A		175		7
Allegiant Travel		68		9
Allied Motion Technologies		61		1
Altra Industrial Motion		171		5
American Railcar Industries		38		1
American Science & Engineering		28		1
American Woodmark*		80		6
Apogee Enterprises		176		8
Applied Industrial Technologies		238		11
ARC Document Solutions*		317		1
ArcBest		119		2
Argan		93		3
Astec Industries		124		7
Astronics*		141		5
Atlas Air Worldwide Holdings*		158		7
AZZ		149		9
Barnes Group		321		11
Barrett Business Services		13		–
Beacon Roofing Supply*		294		13
BMC Stock Holdings*		249		5
Brady, Cl A		285		9
Briggs & Stratton		274		6
Brink’s		285		8
Builders FirstSource*		304		4
CAI International*		116		1
CBIZ*		339		4
CEB		190		12
Chart Industries*		201		5
CIRCOR International		108		6
Civeo (Canada)*		1,023		2
CLARCOR		287		17
Columbus McKinnon		133		2
Comfort Systems USA		227		7
Commercial Vehicle Group*		381		1
Continental Building Products*		204		5
CRA International*		84		2
Cubic		123		5
Curtiss-Wright		253		21
Deluxe		288		19
DigitalGlobe*		395		8
Douglas Dynamics		161		3
DXP Enterprises*		15		–
Dycom Industries*		193		16
Eagle Bulk Shipping (Marshall Islands)*		522		–
Echo Global Logistics*		133		3
EMCOR Group		361		17
Encore Wire		123		5
EnerSys		252		15
Engility Holdings*		113		3
Ennis		190		3
EnPro Industries		127		6
ESCO Technologies		171		7
Essendant		232		7
Esterline Technologies*		168		11
ExOne*		113		1
Exponent		158		9
Federal Signal		399		5
Forward Air		190		9
Franklin Covey*		106		2
Franklin Electric		285		10
FreightCar America		113		2

	Number of Shares		Value     (000)
FTI Consulting*		244		$10
G&K Services, Cl A		119		9
Generac Holdings*		399		15
General Cable		235		3
Gibraltar Industries*		209		6
Global Brass & Copper Holdings		149		4
Gorman-Rupp		130		4
GP Strategies*		98		2
Graham		92		2
Granite Construction		234		10
Great Lakes Dredge & Dock*		417		2
Greenbrier		165		5
Griffon		216		4
H&E Equipment Services		190		4
Hawaiian Holdings*		280		11
Healthcare Services Group		417		16
Heartland Express		313		6
HEICO		114		8
Heidrick & Struggles International		133		2
Herman Miller		341		11
Hillenbrand		368		11
HNI		271		12
Hub Group, Cl A*		216		9
Hurco		62		2
Huron Consulting Group*		130		8
Hyster-Yale Materials Handling		68		4
ICF International*		133		5
InnerWorkings*		65		1
Insperity		103		7
Insteel Industries		133		4
Interface		407		7
John Bean Technologies		175		11
Kadant		82		4
Kaman		171		7
Kelly Services, Cl A		171		3
KEYW Holding*		206		2
Kforce		94		2
Kimball International, Cl B		127		1
Knight Transportation		357		9
Knoll		295		7
Korn/Ferry International		250		7
LB Foster, Cl A		97		1
Lindsay		71		5
LSI Industries		210		2
Lydall*		123		5
Marten Transport		171		3
Masonite International (Canada)*		176		12
MasTec*		383		9
Matson		215		7
Matthews International, Cl A		178		10
McGrath RentCorp		118		3
Meritor*		592		5
Mistras Group*		113		3
Mobile Mini		279		10
Moog, Cl A*		221		12
MRC Global*		614		9
MSA Safety		171		9
Mueller Industries		340		11
Mueller Water Products, Cl A		956		11
Multi-Color		80		5
MYR Group*		149		4
National Presto Industries		37		3

See Notes to Financial Statements.

9

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Industrials — continued
Navigant Consulting*		324		$  5
NCI Building Systems*		106		2
NN		133		2
Nortek*		58		3
Northwest Pipe*		61		1
Novanta (Canada)*		220		3
Omega Flex		37		1
On Assignment*		305		11
PAM Transportation Services*		31		1
Park-Ohio Holdings		58		2
Patrick Industries*		89		5
PGT*		267		3
Powell Industries		28		1
Primoris Services		176		4
Proto Labs*		136		9
Quad/Graphics		171		3
Quanex Building Products		176		3
Raven Industries		161		3
RBC Bearings*		133		10
Resources Connection		270		4
Rexnord*		576		12
Roadrunner Transportation Systems*		212		2
RPX*		216		2
Rush Enterprises, Cl A*		160		4
Safe Bulkers (Marshall Islands)		1,155		1
Saia*		149		4
Simpson Manufacturing		246		10
SkyWest		317		7
SP Plus*		113		3
Standex International		76		7
Steelcase, Cl A		503		8
Sun Hydraulics		133		4
Swift Transportation*		497		8
TAL International Group*		178		3
TASER International*		321		7
Team*		130		4
Teledyne Technologies*		201		20
Tennant		113		6
Tetra Tech		367		11
Textainer Group Holdings (Bermuda)		93		1
Thermon Group Holdings*		221		4
Titan International		324		2
Trex*		178		8
TriMas*		205		3
TriNet Group*		175		4
TrueBlue*		246		5
Tutor Perini*		252		6
Ultrapetrol (Bahamas)*		1,532		–
UniFirst		91		11
Universal Forest Products		123		10
Universal Truckload Services		93		1
US Ecology		138		6
Viad		145		5
Vicor*		87		1
Virgin America*		135		8
VSE		34		2
Wabash National*		423		6
WageWorks*		211		12
Watts Water Technologies, Cl A		171		10
Werner Enterprises		268		7
Wesco Aircraft Holdings*		341		5
West		312		7

	Number of Shares		Value     (000)
Woodward		353		$   20
Xerium Technologies*		108		1
XPO Logistics*		416		12
YRC Worldwide*		198		2
				1,226
Information Technology — 17.8%
ACI Worldwide*		674		14
Actua*		183		2
Acxiom*		447		9
ADTRAN		310		6
Advanced Energy Industries*		245		9
Advanced Micro Devices*		3,736		17
Alarm.com Holdings*		87		2
Alliance Fiber Optic Products*		111		2
Alpha & Omega Semiconductor (Bermuda)*		161		2
Ambarella (Cayman Islands)*		182		8
American Software, Cl A		210		2
Amkor Technology*		742		5
Angie’s List*		308		3
Anixter International*		165		10
Applied Micro Circuits*		475		3
Applied Optoelectronics*		122		1
Aspen Technology*		497		19
AVG Technologies NV (Netherlands)*		249		5
AVX		307		4
Axcelis Technologies*		881		2
Badger Meter		91		7
Bankrate*		431		4
Barracuda Networks*		67		1
Bazaarvoice*		121		–
Bel Fuse, Cl B		115		2
Belden		249		16
Benchmark Electronics*		328		7
Black Box		113		1
Blackbaud		270		17
Blackhawk Network Holdings*		276		10
Blucora*		280		3
Bottomline Technologies*		227		6
Brightcove*		198		1
BroadSoft*		175		8
Brocade Communications Systems		356		3
Brooks Automation		299		3
Cabot Microelectronics		149		6
CACI International, Cl A*		138		14
CalAmp*		227		3
Calix*		304		2
Callidus Software*		285		5
Cardtronics*		266		10
Cascade Microtech*		123		3
Cass Information Systems		80		4
Cavium*		289		14
CEVA*		157		4
Ciber*		608		1
Ciena*		634		11
Cimpress NV (Netherlands)*		190		19
Cirrus Logic*		361		13
Coherent*		139		13
Cohu		199		2
CommVault Systems*		266		12
comScore*		244		8
Comtech Telecommunications		123		3

See Notes to Financial Statements.

10

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Information Technology — continued
Convergys		568		$16
Cornerstone OnDemand*		308		12
CPI Card Group		173		1
Cray*		246		8
CSG Systems International		199		8
CTS		227		4
Cvent*		147		5
Daktronics		246		2
Datalink*		208		2
Demandware*		169		8
DHI Group*		311		2
Diebold		385		10
Digi International*		209		2
Diodes*		227		4
DSP Group*		203		2
DTS*		125		3
EarthLink Holdings		446		3
Ebix		163		7
Electro Rent		19		–
Electronics For Imaging*		274		12
Ellie Mae*		166		14
Endurance International Group Holdings*		383		4
EnerNOC*		160		1
Entegris*		853		12
Envestnet*		205		7
EPAM System*		280		21
Epiq Systems		227		3
ePlus*		37		3
Euronet Worldwide*		292		23
Everi Holdings*		534		1
EVERTEC (Puerto Rico)		393		6
Everyday Health*		264		2
Exar*		246		2
ExlService Holdings*		198		10
Extreme Networks*		626		2
Fabrinet (Cayman Islands)*		218		8
Fair Isaac		177		20
Fairchild Semiconductor International*		677		13
FARO Technologies*		116		4
FEI		232		25
Finisar*		562		9
Five9*		209		2
Fleetmatics Group PLC (Ireland)*		223		9
FormFactor*		367		3
Forrester Research		84		3
Gigamon*		157		5
Globant SA (Luxembourg)*		108		4
Glu Mobile*		613		1
GrubHub*		422		11
Guidewire Software*		386		23
Hackett Group		176		3
Harmonic*		616		2
HubSpot*		116		6
II-VI*		331		7
Immersion*		34		–
Imperva*		135		5
inContact*		266		4
Infinera*		676		9
Infoblox*		345		7
Inphi*		209		7
Insight Enterprises*		250		7
Integrated Device Technology*		777		18

	Number of Shares		Value     (000)
Interactive Intelligence Group*		95		$  4
InterDigital		218		13
Internap*		399		1
Intersil, Cl A		782		11
Intralinks Holdings*		285		2
InvenSense*		511		3
Itron*		231		10
Ixia*		262		3
IXYS		66		1
j2 Global		271		18
Jive Software*		87		–
Kimball Electronics*		193		2
Lattice Semiconductor*		782		5
Limelight Networks*		548		1
Lionbridge Technologies*		456		2
Liquidity Services*		212		1
Littelfuse		131		15
LivePerson*		218		2
LogMeIn*		149		9
Luxoft Holding (British Virgin Islands)*		110		7
M/A-COM Technology Solutions Holdings*		144		5
Manhattan Associates*		413		27
ManTech International, Cl A		157		6
Marchex, Cl B		365		1
MAXIMUS		376		22
MaxLinear, Cl A*		323		7
Mentor Graphics		539		12
Mercury Systems*		223		5
Mesa Laboratories		24		2
Methode Electronics		226		7
Microsemi*		621		21
MicroStrategy, Cl A*		55		10
MKS Instruments		316		13
ModusLink Global Solutions*		574		1
MoneyGram International*		255		2
Monolithic Power Systems		226		15
Monotype Imaging Holdings		230		6
Monster Worldwide*		660		2
MTS Systems		66		3
Multi-Fineline Electronix*		85		2
Nanometrics*		184		3
NeoPhotonics*		226		2
NETGEAR*		191		9
NetScout Systems*		534		13
NeuStar, Cl A*		340		8
NIC*		399		8
Nimble Storage*		343		3
NVE		37		2
Oclaro*		724		4
OSI Systems*		121		6
Park Electrochemical		136		2
Paycom Software*		190		8
PC Connection		88		2
PDF Solutions*		213		3
Pegasystems		227		6
Perficient*		227		5
Photronics*		422		4
Plantronics		203		9
Plexus*		209		9
Polycom*		780		9
Power Integrations		171		9
Progress Software*		315		8

See Notes to Financial Statements.

11

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Information Technology — continued
Proofpoint*		224		$13
PROS Holdings*		139		2
Qlik Technologies*		510		15
QLogic*		506		7
Qualys*		113		4
Quantum*		1,692		1
Quotient Technology*		400		4
Rambus*		700		9
RealPage*		304		7
Reis		80		2
RetailMeNot*		284		2
Rofin-Sinar Technologies*		190		6
Rogers*		115		8
Rovi*		488		8
Rubicon Project*		180		3
Rudolph Technologies*		226		3
Sanmina*		468		13
ScanSource*		164		6
Science Applications International		265		14
SciQuest*		149		3
Seachange International*		69		–
Semtech*		396		9
ServiceSource International*		120		–
ShoreTel*		234		2
Shutterstock*		134		6
Silicon Graphics International*		291		2
Silicon Laboratories*		252		13
Silver Spring Networks*		148		2
Sonus Networks*		360		3
SPS Commerce*		95		5
Stamps.com*		84		8
Super Micro Computer*		176		5
Sykes Enterprises*		249		7
Synaptics*		210		14
Synchronoss Technologies*		218		8
SYNNEX		168		15
Syntel*		186		9
Take-Two Interactive Software*		483		19
Tangoe*		209		2
Tech Data*		206		16
TechTarget*		148		1
Telenav*		27		–
TeleTech Holdings		113		3
Tessera Technologies		315		10
TiVo*		603		6
Travelport Worldwide (Bermuda)		620		8
Travelzoo*		123		1
TTM Technologies*		432		3
TubeMogul*		54		1
Tyler Technologies*		187		29
Ubiquiti Networks*		186		7
Ultra Clean Holdings*		168		1
Ultratech*		189		4
Unisys*		324		3
Universal Display*		234		16
Varonis Systems*		84		2
VASCO Data Security International*		193		3
Veeco Instruments*		235		4
Verint Systems*		315		10
ViaSat*		241		17
VirnetX Holding*		413		2
Virtusa*		160		6

	Number of Shares		Value     (000)
Vishay Intertechnology		816		$      11
Vishay Precision Group*		121		2
Web.com Group*		197		3
WebMD Health*		220		14
Wix.com*		134		4
Xcerra*		361		2
XO Group*		198		3
Xura*		93		2
Zendesk*		298		7
Zix*		527		2
				1,671
Materials — 4.3%
A. Schulman		131		3
AEP Industries		34		2
AK Steel Holding*		1,126		5
American Vanguard*		190		3
Axiall		417		10
Balchem		179		11
Berry Plastics Group*		673		26
Boise Cascade*		249		6
Calgon Carbon		340		5
Carpenter Technology		280		9
Century Aluminum*		365		2
Chase		58		3
Chemtura*		396		11
Clearwater Paper*		116		7
Cliffs Natural Resources*		1,137		5
Coeur Mining*		845		6
Commercial Metals		573		10
Core Molding Technologies*		98		1
Deltic Timber		76		5
Ferro*		449		6
Ferroglobe PLC (United Kingdom)		288		3
Flotek Industries*		355		4
FutureFuel		161		2
H.B. Fuller		294		13
Handy & Harman*		38		1
Hawkins		80		3
Haynes International		41		1
Headwaters*		443		8
Hecla Mining		2,146		9
Innophos Holdings		139		5
Innospec		153		7
Intrepid Potash*		914		1
Kaiser Aluminum		103		9
KapStone Paper and Packaging		514		8
KMG Chemicals		82		2
Koppers Holdings*		133		3
Kraton Performance Polymers*		209		6
Louisiana-Pacific*		836		15
LSB Industries*		163		2
Materion		135		3
Minerals Technologies		201		12
Myers Industries		190		3
Neenah Paper		104		7
Olin		928		21
Olympic Steel		81		2
OMNOVA Solutions*		340		2
P.H. Glatfelter		217		5
PolyOne		506		19
Quaker Chemical		82		7

See Notes to Financial Statements.

12

	Number of Shares		Value     (000)
COMMON STOCKS — continued
Materials — continued
Rayonier Advanced Materials		331		$  4
Rentech*		340		1
Ryerson Holding*		138		2
Schweitzer-Mauduit International		186		6
Sensient Technologies		262		18
Stepan		113		7
Stillwater Mining*		704		7
SunCoke Energy		433		3
TerraVia Holdings*		330		1
TimkenSteel		306		3
Trecora Resources*		175		2
Tredegar		171		3
Trinseo SA (Luxembourg)*		89		4
Tronox, Cl A (Australia)		317		2
U.S. Concrete*		91		6
United States Lime & Minerals		24		1
Valhi		443		1
Worthington Industries		294		11
				401
Telecommunication Services — 0.8%
8x8*		427		5
Atlantic Tele-Network		58		4
Cincinnati Bell*		1,383		6
Cogent Communications Holdings		274		11
Consolidated Communications Holdings		235		6
FairPoint Communications*		68		1
General Communication, Cl A*		143		2
Globalstar*		2,917		6
IDT, Cl B		98		2
Inteliquent		145		2
Iridium Communications*		545		5
Leap Wireless International (A) (B)		180		–
Lumos Networks*		55		1
Shenandoah Telecommunications		299		10
Spok Holdings		171		3
Vonage Holdings*		869		4
Windstream Holdings		610		5
				73
Utilities — 3.4%
ALLETE		261		15
American States Water		225		9
Atlantic Power (Canada)		893		2
Avista		323		13
Black Hills		268		16
California Water Service Group		236		7
Chesapeake Utilities		67		4
Connecticut Water Service		45		2
Dynegy*		693		13
El Paso Electric		198		9
Empire District Electric		219		7
IDACORP		275		20
MGE Energy		204		10
Middlesex Water		65		3
New Jersey Resources		449		16
Northwest Natural Gas		136		8
NorthWestern		247		14
NRG Yield, Cl A		145		2
NRG Yield, Cl C		189		3
ONE Gas		40		2

	Number of Shares		Value     (000)
Ormat Technologies		181		$      8
Otter Tail		169		5
Pattern Energy Group		269		6
Piedmont Natural Gas		421		25
PNM Resources		457		15
Portland General Electric		470		19
South Jersey Industries		359		11
Southwest Gas		246		17
Spire		227		15
Unitil		58		2
WGL Holdings		263		17
				315
Total Common Stocks (Cost $9,328)				9,132
EXCHANGE-TRADED FUND — 2.1%
iShares Russell 2000 Index Fund (USA)†		1,721		198
Total Exchange-Traded Fund (Cost $190)				198
MONEY MARKET FUND — 0.8%
PNC Government Money Market Fund, Class I Shares 0.080%† (C)		69,289		69
Total Money Market Fund (Cost $69)				69
RIGHTS — 0.0%
Chelsea Therapeutics International (A) (B)		309		–
Total Rights (Cost $ – )				–
WARRANTS — 0.0%
Hercules Offshore* (A) (B)		64		–
Total Warrants (Cost $ – )				–
TOTAL INVESTMENTS — 100.1%
(Cost $9,587)**				9,399
Other Assets & Liabilities – (0.1)%				(6	)
TOTAL NET ASSETS — 100.0%				$9,393

* Non-income producing security.

** Aggregate cost for Federal income tax purposes is (000) $9,599.

Gross unrealized appreciation (000)	$1,073
Gross unrealized depreciation (000)	(1,273	)
Net unrealized depreciation (000)	$(200	)

† Affiliated Holding. See Note 3 in Notes to Financial Statements.

(A) Security fair valued using methods approved by the Board of Trustees.

(B) Illiquid Security. Total value of illiquid securities is $2 (000) and represents less than 0.1% of net assets as of May 31, 2016.

(C) The rate quoted is the annualized seven-day effective yield of the fund at period end.

See Notes to Financial Statements.

13

P N C  S m a l l  C a p  I n d e x  F u n d

S C H E D U L E  O F  I N V E S T M E N T S

M a y  3 1 ,  2 0 1 6

Valuation Hierarchy:

A summary of inputs used to value the Fund’s investments as of May 31, 2016 is as follows (See Note 2 in Notes to Schedules of Investments).

	Level 1 Quoted Prices (000)			Level 2 Other Significant Observable Inputs (000)			Level 3 Significant Unobservable Inputs (000)			Total Value (000)
Assets:
Common Stocks		$	9,130		$	–		$	2		$	9,132
Exchange-Traded Fund			198			–			–			198
Money Market Fund			69			–			–			69
Rights			–			–			–			–
Warrants			–			–			–			–
Total Assets - Investments in Securities		$	9,397		$	–		$	2		$	9,399

There were no transfers between Levels during the fiscal year ended May 31, 2016.

See Notes to Financial Statements.

14

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.15d-15(b)).

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(12.other) Pursuant to the “Iran Threat Reduction and Syria Human Rights Act of 2012” (the “Act”) please indicate whether the Registered Investment Company or any of its other affiliates has made investments or has engaged in specific activities in Iran within its last fiscal year end. A registered investment company or its affiliates will be required to disclose its activities if it has done the following: (i) knowingly engaged in an activity described in subsection (a) or (b) of Section 5 of the Iran Sanctions Act of 1996; (ii) knowingly engaged in any activity described in subsection (c)(2) of section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, or a transaction described in section (d)(l) of that section; (iii) knowingly conducted any transaction or dealing with: (a) any person the property and interests in property of which are blocked pursuant to Executive Order No. 13224; (b) any person the property and interests in property of which are blocked pursuant to Executive Order No. 13382; and (c) any person or entity identified under section 560.304 of title 31, Code of Federal Regulations; or (iv) knowingly conducting any transaction or dealing with any person defined as the “Government of Iran” in 31 CFR 560.304 without specific authorization of a Federal department or agency.

Neither the Registrant nor any of its other affiliates has knowingly made investments or has knowingly engaged in specific activities in Iran within its last fiscal year end.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)     PNC Funds
By (Signature and Title)*    /s/ Jennifer Spratley
	Jennifer Spratley, President
	(principal executive officer)
Date     7/28/2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)*    /s/ Jennifer Spratley
	Jennifer Spratley, President
	(principal executive officer)
Date     7/28/2016
By (Signature and Title)*    /s/ John Kernan
	John Kernan, Treasurer
	(principal financial officer)
Date     7/28/2016

* Print the name and title of each signing officer under his or her signature.