• Royce Select Fund II (RSFDX)

    Investment Class
    Category: QUALIFIED INVESTOR

    1. Open to New Investors

      NAV as of 5/16/2012  $10.26
      Daily NAV change  -$0.04 (-0.39%)

      1. Management Team

        Portfolio Manager

        James J. Harvey

        Assistant Portfolio Manager

        Charles M. Royce

        Special Features

        • The Fund incorporates the same fundamental investment disciplines certain of our long-only offerings with the added flexibility to short stocks, use leverage and vary market cap exposure.
        • The Fund pays a management fee to Royce equal to 12.5% of its respective pre-fee total return to a performance peak. Royce absorbs all other ordinary expenses of the Fund, other than the dividend expense relating to short selling, interest expense on borrowing and any applicable acquired fund fees and expenses. The Fund's management fee is subject to a daily high watermark, which means that Royce will only receive a fee during periods of positive performance from a prior peak for the Fund.

        Relative Risk Spectrum

        Risk Assessment

        go View the complete spectrum

        Literature & Research

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      2. Royce Select Fund II (RS2) seeks long-term growth of capital and is designed for “qualified investors.” The Fund invests in both long and short positions in equity securities. The long portion of the Fund’s portfolio is invested in a limited number (generally less than 100) of micro-, small- and mid-cap companies that Royce believes possess excellent business strengths and/or growth prospects, high internal rates of return and low leverage. Royce may also attempt to take advantage of what it believes are opportunistic situations for undervalued securities. The Fund may establish up to 35% of its net assets in short equity positions and may employ leverage. We believe that investors in the Fund should have a long-term investment horizon of at least three years.

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        Average Annual Total Returns
        as of Quarter-End 3/31/12 as of Month-End 4/30/12

          1Q* YTD* 1YR 3YR 5YR Since Inception  Inception Date
        RSFDX 11.71% 11.71% -7.85% 24.57% 3.35% 6.84% 6/30/2005 
        Annual Operating Expenses: 2.80%

        * Not Annualized

        1. Fund Statistics
          as of Quarter-End 3/31/2012

          Fund Net Assets (All Classes) $4 million
          Ticker Symbol RSFDX
          Number of Holdings 73
          Average Market Capitalization* $1.12 billion
          Weighted Average P/E Ratio** 2.9x
          Weighted Average P/B Ratio 1.9x
          U.S. Investments
          (% of Net Assets)          		 36.5%
          Non-U.S. Investments
          (% of Net Assets)          		 40.5%
          Portfolio Turnover 2011 153%
          Minimum Investment $50,000
          Cusip Number 780905428
          Fund Number 352
          Fund Inception Date 6/30/2005
          Benchmark Index Russell 2000
            Russell Global Small Cap

          * Geometrically calculated
          ** The Fund's P/E ratio calculation excludes companies with zero or negative earnings (4% of portfolio holdings as of 3/31/2012).

        2. Value of $10,000 Invested on 6/30/05
          As of Quarter-End 3/31/2012

          RSFDX vs Russell 2000

      1. Value of $10,000 Invested on 6/30/05
        As of Quarter-End 3/31/2012

        RSFDX vs Russell 2000

        Calendar Year Total Returns
        as of Quarter-End 3/31/2012

        Calendar Year Total Returns

        Performance Breakdown by Sector
        for Quarter Ended 3/31/2012

          Sector Name Gain/Loss*
        (in millions)
        1 Information Technology $0.19
        2 Materials $0.08
        3 Consumer Discretionary $0.06
        4 Industrials $0.02
        5 Financials $0.02
        6 Health Care $0.02
        7 Consumer Staples $0.01
        8 Diversified Investment Companies -$0.00
        9 Energy -$0.01

        *Represents net realized and unrealized gains and losses during the three-month period ended 3/31/2012. Performance results are estimates based upon unaudited portfolio results.

        Top 5 Winners*
        for Quarter Ended 3/31/2012

        Company Gain*
        (in millions)
        Western Digital $0.03
        Teradyne $0.02
        ASM International $0.02
        Foxconn Technology $0.02
        Multi-Fineline Electronix $0.02

        *Represents net realized and unrealized gains and losses during the three-month period ended 3/31/2012. Performance results are estimates based upon unaudited portfolio results.

        Top 5 Losers*
        for Quarter Ended 3/31/2012

        Company Loss*
        (in millions)
        Comba Telecom Systems Holdings -$0.02
        VF Corporation -$0.02
        China High Precision Automation Group -$0.01
        Simon Property Group -$0.01
        Financial Select Sector SPDR Fund -$0.01

        *Represents net realized and unrealized gains and losses during the three-month period ended 3/31/2012. Performance results are estimates based upon unaudited portfolio results.

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      2. Average Annual Total Returns
        as of Quarter-End 3/31/12 as of Month-End 4/30/12

          1Q* YTD* 1YR 3YR 5YR Since Inception  Inception Date
        RSFDX 11.71% 11.71% -7.85% 24.57% 3.35% 6.84% 6/30/2005
        Annual Operating Expenses: 2.80%

        * Not Annualized


        Cumulative Performance Since Inception (6/30/2005)
        and Since Market Cycle Peak as of Quarter-End 3/31/12

        RSFDX

        View how RS2 performed during down markets.

        Absolute Return Focus: Five Year Monthly Rolling Return Periods 
        as of Quarter-End 3/31/12
        Number of Five-Year Average Annual Return Periods since RS2's Inception

        RSFDX

        Relative Return Focus: Five Year Monthly Rolling Return Periods 
        as of Quarter-End 3/31/12
        RS2 Spread vs. since RS2's Inception

        RSFDX

        Distribution History

        5-Year Distribution History
        Record Date Payable Date Ordinary Income S/T Gains L/T Gains Total Reinvest Price
        12/14/11 12/15/11 $0.0000 $0.0635 $1.8345 $1.90 $9.66
        12/15/10 12/16/10 $0.0024 $— $0.1501 $0.15 $13.64
        12/15/09 12/16/09 $0.0729 $— $— $0.07 $11.42
        12/15/08 12/16/08 $0.0803 $— $— $0.08 $6.83
        12/27/07 12/28/07 $0.0000 $0.3887 $0.2779 $0.67 $10.69
        4/11/07 4/12/07 $0.0000 $0.0240 $— $0.02 $12.60
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        1. NAV History

          Previous 12 Months Ending 4/30/2012
          High $14.73 5/1/11
          Low $9.56 12/19/11
          Previous Month Ending 4/30/2012
          High $11.25 4/2/12
          Low $10.72 4/10/12

          NAV Search


        2. Year-End NAVs

          Year NAV
          2011 $9.99
          2010 $13.90
          2009 $11.62
          2008 $7.02
          2007 $10.66
          2006 $12.01
          2005 $10.71

    4. Portfolio Manager

      James J. Harvey

      James J. Harvey

      • Portfolio Manager
      • CFA

      James J. Harvey, CFA, is a Portfolio Manager for Royce & Associates, LLC, investment adviser to The Royce Funds.

      View Full Bio

      Education

      • BS, State University of New York, Albany
      • MBA, New York University

      Experience

      • 19 Years of Experience
      • 13 Years at Royce

      Assistant Portfolio Manager

      Charles M. Royce

      Charles M. Royce

      • President and Co-Chief Investment Officer

      Charles M. Royce is President and Co-Chief Investment Officer of Royce & Associates, LLC and President of The Royce Funds, a position he has held since 1972.

      View Full Bio

      Education

      • BA, Brown University,
      • MBA, Columbia University,

      Experience

      • 49 Years of Experience
      • 39 Years at Royce

      1. Portfolio Statistics
        as of Quarter-End 3/31/2012

        Fund Net Assets (All Classes) $4 million
        Number of Holdings 73
        Average Market Capitalization* $1.12 billion
        Weighted Average P/E Ratio** 2.9x
        Weighted Average P/B Ratio 1.9x
        Portfolio Turnover 2011 153%

        *Geometrically calculated
        **The Fund's P/E ratio calculation excludes companies with zero or negative earnings (4% of portfolio holdings as of 3/31/2012).

        Market Cap Exposure (In Millions)
        as of Quarter-End 3/31/2012

        Royce Select Fund II

      2. Top 10 Long Positions
        as of Quarter-End 3/31/2012
        % of Net Assets (Subject to Change)

        Teradyne 2.6%
        Western Digital 2.5%
        ASM International 2.1%
        Market Vectors Junior Gold Miners ETF 2.0%
        Helmerich & Payne 1.9%
        American Eagle Outfitters 1.9%
        CSE Global 1.8%
        Stella International Holdings 1.8%
        Children's Place Retail Stores 1.8%
        Integrated Silicon Solution 1.8%
        Top 10 as % of Total 20.1%

        Short Positions
        as of Quarter-End 3/31/2012
        % of Net Assets (Subject to Change)

        V.F. Corporation-4.0%
        Simon Property Group, Inc.-2.4%
        PowerShares QQQ-1.5%
        iShares Russell Microcap Index-1.3%
        Financial Select Sector SPD-1.0%

        Portfolio Holdings
        as of Quarter-End 3/31/2012

        View the complete list of holdings for Royce Select Fund II as of 3/31/2012. Not posted sooner than 15 days after the end of the period. Unaudited schedule of portfolio holdings is presented for informational purposes only.

      3. Portfolio Sector Breakdown
        as of Quarter-End 3/31/2012
        as of Month-End 4/30/2012
        % of Net Assets (Subject to Change)

        Information Technology 28.5%
        Materials 15.3%
        Consumer Discretionary 13.4%
        Energy 7.8%
        Industrials 7.3%
        Financials 3.4%
        Consumer Staples 1.2%
        Health Care 1.2%
        Diversified Investment Companies -1.3%
        Cash & Cash Equivalents 23.1%

        Asset Allocation
        as of 3/31/2012
        % of Net Assets (Subject to Change)

        Royce Select Fund II Asset Allocation

      1. Relative Risk Spectrum

        Risk Assessment

        go View the complete spectrum

        Five-Year Morningstar Statistical Measures as of 3/31/2012*

          RS2 Category Median Best Breakpoint
        Sharpe Ratio 0.22 0.19 0.24
        Standard Deviation 25.16 24.15 23.01

        *Five years ended 3/31/2012. Category Median and Best Quartile Breakpoint based on 346 small-cap objective funds (oldest class only) with at least five years of history.

        Risk Disclosure

        The Sharpe Ratio is calculated for a specified period by dividing a fund's annualized excess returns by its annualized standard deviation. The higher the Sharpe Ratio, the better the fund's historical risk-adjusted performance. Standard deviation is a statistical measure within which a fund's total returns have varied over time. The greater the standard deviation, the greater a fund's volatility.

        Risk/Return Comparison
        Five-Year Period Ended 3/31/2012

          Average Annual Total Return Standard Deviation Return Efficiency*
        RS2 3.35 25.16 0.13
        Russell 2000 2.13 24.68 0.09

        *Return Efficiency is the average annual total return divided by the annualized standard deviation over a designated time period. Please read the prospectus for a more complete discussion of risk.

        Over the last five years, Royce Select Fund II outperformed the on both an absolute and risk adjusted basis.

        Down Quarters
        Performance Comparison Since RS2's Inception Through 3/31/12

        Quarter RS2 Spread
        9/30/11 -21.9% -22.3% -0.4% 
        6/30/11 -1.6 -7.3 -5.7 
        6/30/10 -9.9 -8.2 +1.7 
        3/31/09 -15.0 +0.1 +15.1 
        12/31/08 -26.1 -23.1 +3.0 
        9/30/08 -1.1 -2.6 -1.5 
        3/31/08 -9.9 -10.8 -0.9 
        12/31/07 -4.6 -7.9 -3.3 
        9/30/07 -3.1 -1.5 +1.6 
        6/30/06 -5.0 -2.6 +2.4 

        Royce Select Fund II outperformed the in five out of 10 down quarters.

      2. Down Market Performance Comparison (In Percentages):
        as of Quarter-End 3/31/2012

        RS2 vs Russell 2000

        Average Annual Total Returns
        as of Quarter-End 3/31/12 as of Month-End 4/30/12

          1Q* YTD* 1YR 3YR 5YR Since Inception  Inception Date
        RSFDX 11.71% 11.71% -7.85% 24.57% 3.35% 6.84% 6/30/2005 
        Annual Operating Expenses: 2.80%

        * Not Annualized

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      1. Shareholder Fees

        (fees paid directly from your investment)
        Maximum sales charge (load) imposed on purchases 0.00%
        Maximum deferred sales charge 0.00%
        Maximum sales charge (load) imposed on reinvested dividends 0.00%
        Redemption fee (as a percentage of amount redeemed on shares held for less than 365 days) 2.00%

      2. Annual Fund Operating Expenses

        (expenses that you pay each year as a percentage of the value of your investment)
        Management fees (12.5% of pre-fee high watermarked return) 1.11%
        Distribution (12b-1) fees 0.00%
        Other expenses 0.11%
        Dividends on securities sold short 0.07%
        Acquired fund fees and expenses 0.01%
        Total annual Fund operating expenses 1.30%
        Total annual Fund operating expenses may differ from the expense ratio in the Fund's Financial Highlights because they include only the Fund's direct operating expenses and do not include acquired fund fees and expenses, which reflect the estimated amount of the fees and expenses incurred indirectly by the Fund through its investments in mutual funds, hedge funds, private equity funds and other investment companies.

      3. Account Minimums

        To Open an Account
        Minimum investment $50,000
        Minimum subsequent investment $100

        This Fund is designed for qualified investors, as defined in the prospectus.


    9. © Royce & Associates, LLC, 745 Fifth Avenue, New York, NY 10151, (800) 221-4268. All rights reserved. Distributor of The Royce Fund and Royce Capital Fund: Royce Fund Services, Inc., a wholly owned subsidiary of Royce & Associates. The Royce Funds are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. View our Policies & Procedures, including, among others, our Sarbanes-Oxley Code of Ethics, Privacy Policy and Proxy Voting Guidelines and Procedures.