At a Glance

Overview

Investment Objective

Long-term growth of capital — may invest in both long and short positions

Portfolio Approach

Focused portfolio, theme-based, opportunistic value approach

Market Cap Range

Small-cap and micro-cap stocks, generally up to $2.5 billion

Manager Tenure

Bill Hench since 2010 and assistant Buzz Zaino since 2010

Literature

PDF Factsheet
Link Summary Prospectus
Link Prospectus
Link Semiannual Report
Link Annual Report
Manager Commentary

See All

As of 3/31/2014

Portfolio Manager

  • Buzz Zaino
    Assistant Portfolio Manager
    since 2010




Related Insights & News

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 1-Year, 3-Year and since inception (8/31/2010) periods as of 3/31/2014
1QTR YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select 5.91 5.9137.4017.3425.07 8/31/2010
Russell 2000 1.12 1.1224.9013.1822.13 N/A

Annual Operating Expenses: Gross 2.67% Net 1.38%

MAR YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select 0.48 5.9137.4017.3425.07 8/31/2010
Russell 2000 -0.68 1.1224.9013.1822.13 N/A

Annual Operating Expenses: Gross 2.67% Net 1.38%

APR YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select -1.32 4.5239.4917.0824.11 8/31/2010
Russell 2000 N/A N/AN/AN/AN/A N/A

Annual Operating Expenses: Gross 2.67% Net 1.38%

Important Performance and Expense Information

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 180 days of purchase may be subject to a 1% redemption fee, payable to the Fund, which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.roycefunds.com. Gross operating expenses reflect the Fund's total gross annual operating expenses and include management fees, dividends on securities sold short, other expenses and acquired fund fees and expenses. Net operating expenses reflect contractual fee waivers and/or expense reimbursements. All expense information is reported as of the Funds most current prospectus. Royce & Associates has contractually agreed to waive fees and/or reimburse operating expenses to the extent necessary to maintain the Fund's net annual operating expenses, other than dividends on securities sold short, and interest expense on borrowing, at or below 1.24% through April 30, 2015 and at or below 1.99% through April 30, 2023.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 in 100% of all 3-Year periods; and 66% of all 1-Year periods.

Monthly Rolling Average Annual Return Periods Since Inception Through 3/31/2014

periods beating
the index(%)
fund
avg(%)
index
avg(%)
3-year
8/8
100 19.0 16.5
1-year
21/32
66 20.1 15.9

Market Cycle Performance

The Fund outperformed the Russell 2000 from its inception and the 4/29/11 index peak through 3/31/14.
Inception-Current - 08/31/2010 - 03/31/2014
Opportunity Select122.8%
Russell 2000104.6%

Peak-Current - 04/29/2011 - 03/31/2014
Opportunity Select58.9%
Russell 200041.3%

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 8/31/2010 and 3/31/2014

Opportunity Select$22,278.44
Russell 2000$20,461.46

Portfolio Impactas of 3/31/2014

SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Information Technology28.49.02.3
Industrials20.58.21.8
Financials10.15.30.5
Health Care1.618.80.3
Energy9.81.00.2
Consumer Discretionary13.50.80.2
Consumer Staples0.711.90.1
Materials7.2-1.9-0.1
Cash8.20.00.0

Top Contributors

INDUSTRYSECTORGAIN(%)
Semiconductors & Semiconductor EquipmentInformation Technology1.8
MachineryIndustrials0.7
BanksFinancials0.5
Auto ComponentsConsumer Discretionary0.3
Trading Companies & DistributorsIndustrials0.3

Top Detractors

INDUSTRYSECTORGAIN(%)
Communications EquipmentInformation Technology-0.2
Textiles, Apparel & Luxury GoodsConsumer Discretionary-0.2
Construction & EngineeringIndustrials-0.2
Specialty RetailConsumer Discretionary-0.2
InsuranceFinancials-0.1

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
RF Micro DevicesSemiconductors & Semiconductor EquipmentInformation Technology0.6
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology0.5
PowerSecure InternationalElectrical EquipmentIndustrials0.4
Warren ResourcesOil, Gas & Consumable FuelsEnergy0.4
Tower InternationalAuto ComponentsConsumer Discretionary0.3

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
Hercules OffshoreEnergy Equipment & ServicesEnergy-0.4
Extreme NetworksCommunications EquipmentInformation Technology-0.4
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.3
MagnaChip SemiconductorSemiconductors & Semiconductor EquipmentInformation Technology-0.3
M.D.C. HoldingsHousehold DurablesConsumer Discretionary-0.2
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Information Technology28.49.02.3
Industrials20.58.21.8
Financials10.15.30.5
Health Care1.618.80.3
Energy9.81.00.2
Consumer Discretionary13.50.80.2
Consumer Staples0.711.90.1
Materials7.2-1.9-0.1
Cash8.20.00.0
Unassigned--0.6
Total--5.9

Top Contributors

INDUSTRYSECTORGAIN(%)
Semiconductors & Semiconductor EquipmentInformation Technology1.8
MachineryIndustrials0.7
BanksFinancials0.5
Auto ComponentsConsumer Discretionary0.3
Trading Companies & DistributorsIndustrials0.3

Top Detractors

INDUSTRYSECTORGAIN(%)
Communications EquipmentInformation Technology-0.2
Textiles, Apparel & Luxury GoodsConsumer Discretionary-0.2
Construction & EngineeringIndustrials-0.2
Specialty RetailConsumer Discretionary-0.2
InsuranceFinancials-0.1

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
RF Micro DevicesSemiconductors & Semiconductor EquipmentInformation Technology0.6
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology0.5
PowerSecure InternationalElectrical EquipmentIndustrials0.4
Warren ResourcesOil, Gas & Consumable FuelsEnergy0.4
Tower InternationalAuto ComponentsConsumer Discretionary0.3

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
Hercules OffshoreEnergy Equipment & ServicesEnergy-0.4
Extreme NetworksCommunications EquipmentInformation Technology-0.4
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.3
MagnaChip SemiconductorSemiconductors & Semiconductor EquipmentInformation Technology-0.3
M.D.C. HoldingsHousehold DurablesConsumer Discretionary-0.2
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Information Technology29.843.612.4
Industrials17.654.48.9
Financials13.653.87.3
Consumer Discretionary13.344.85.8
Materials6.628.41.9
Energy8.819.51.4
Health Care1.5113.31.3
Consumer Staples0.5-0.80.0
Cash8.30.00.0
Unassigned---1.5
Total--37.4

Top Contributors

INDUSTRYSECTORGAIN(%)
Semiconductors & Semiconductor EquipmentInformation Technology10.2
BanksFinancials3.3
MachineryIndustrials3.1
Thrifts & Mortgage FinanceFinancials2.2
MediaConsumer Discretionary2.1

Top Detractors

INDUSTRYSECTORGAIN(%)
MarineIndustrials-0.6
BeveragesConsumer Staples-0.1
Electronic Equipment, Instruments & ComponentsInformation Technology-0.1
Paper & Forest ProductsMaterials-0.1
Internet Software & ServicesInformation Technology0.0

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology2.5
Acquity Group ADRMediaConsumer Discretionary2.0
Independent Bank GroupBanksFinancials1.5
MeritorMachineryIndustrials1.4
Arkansas BestRoad & RailIndustrials1.2

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
Walter EnergyMetals & MiningMaterials-0.9
Genco Shipping & TradingMarineIndustrials-0.7
Hercules OffshoreEnergy Equipment & ServicesEnergy-0.6
AudienceElectronic Equipment, Instruments & ComponentsInformation Technology-0.4
Mindspeed TechnologiesSemiconductors & Semiconductor EquipmentInformation Technology-0.4
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Consumer Discretionary13.9156.519.7
Industrials16.175.014.2
Information Technology25.734.312.1
Financials12.080.28.6
Energy9.458.84.1
Materials7.821.12.4
Diversified Investment Companies0.212.70.2
Telecommunication Services0.2-28.6-0.4
Health Care1.370.9-0.5
Consumer Staples2.0-30.2-2.5
Cash11.30.20.0
Unassigned--3.5
Total--61.6

Top Contributors

INDUSTRYSECTORGAIN(%)
Semiconductors & Semiconductor EquipmentInformation Technology12.7
Household DurablesConsumer Discretionary7.3
Specialty RetailConsumer Discretionary5.9
Building ProductsIndustrials5.8
ChemicalsMaterials5.3

Top Detractors

INDUSTRYSECTORGAIN(%)
Communications EquipmentInformation Technology-6.6
Food & Staples RetailingConsumer Staples-2.6
Paper & Forest ProductsMaterials-1.9
Internet Software & ServicesInformation Technology-1.6
Health Care Providers & ServicesHealth Care-1.4

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
Ellie MaeSoftwareInformation Technology5.9
Standard PacificHousehold DurablesConsumer Discretionary4.9
Lithia Motors Cl. ASpecialty RetailConsumer Discretionary4.1
Axiall CorporationChemicalsMaterials2.6
U.S. Silica HoldingsMetals & MiningMaterials2.3

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
Smith Micro SoftwareSoftwareInformation Technology-3.5
Powerwave TechnologiesCommunications EquipmentInformation Technology-3.4
Century AluminumMetals & MiningMaterials-3.1
SUPERVALUFood & Staples RetailingConsumer Staples-2.1
Ultra Clean HoldingsSemiconductors & Semiconductor EquipmentInformation Technology-2.1
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Total--0.0

Top Contributors

INDUSTRYSECTORGAIN(%)

Top Detractors

INDUSTRYSECTORGAIN(%)

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)

Risk

Down Market Performance Comparisonas of 3/31/2014

The Fund outperformed the Russell 2000 during one out of two downturns of 7.5% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)OPPORTUNITY SELECT (%)SPREAD (%)
6/30/2012-3.5-1.1+2.4
9/30/2011-21.9-26.2-4.3
6/30/2011-1.6-6.9-5.3

Capture Ratios

DATE UP DOWN
From Fund's First Full Quarter
(9/30/2010 - 3/31/2014)
127% 128%
Ten Year % %
Five Year 62% %

Upside Capture Ratio measures a manager's performance in up markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes up and dividing it by the benchmark's return in those quarters.

Downside Capture Ratio measures a manager's performance in down markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes down and dividing it by the benchmark's return in those quarters.

Long Term Risk Measurementas of

Over the past 3 years, the Fund outperformed the Russell 2000.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 3/31/2014

Sharpe RatioStandard Deviation

Sharpe Ratio Standard Deviation
Opportunity Select
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Market Cap Exposureas of 3/31/2014

  • Micro-Cap
    $788.1B
    Avg. Market Cap

Diagnosticsas of 3/31/2014

Weighted Avg. P/B
1.7x
2013 Portfolio Turnover
129%
102%

Portfolio Exposureas of 3/31/2014

EXPOSURE(%)NUMBER OF POSITIONS
Long99.098
Short-5.518
Net93.5116
Gross104.5

Portfolio Allocation as of 3/31/2014

  • Focused
    116
    Positions

SECTORSLONG(%)SHORT(%)NET(%)Russell 2000(%)
Information Technology31.5-0.630.917.7
Industrials21.0-0.420.514.6
Energy11.2-11.25.6
Financials11.1-11.123.2
Consumer Discretionary13.6-3.110.413.0
Materials8.2-0.87.34.9
Health Care1.9-1.913.4
Consumer Staples0.6-0.60.13.7
Telecommunication Services---0.7
Utilities---3.1
Cash and Cash Equivalents6.5-6.5-
LONG POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Independent Bank Group
2.0
Extreme Networks
1.9
Air Lease Cl. A
1.9
M.D.C. Holdings
1.8
AK Steel Holding Corporation
1.7
Kennedy-Wilson Holdings
1.6
Logitech International
1.6
Quanex Building Products
1.6
OM Group
1.5
PowerSecure International
1.5
Top 10 as % of Net Assets
17.1
SHORT POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
CF Industries Holdings
-0.8
Vitamin Shoppe
-0.6
Zillow Cl. A
-0.6
Lumber Liquidators Holdings
-0.4
Life Time Fitness
-0.3
Sprouts Farmers Markets
-0.3
Group 1 Automotive
-0.3
Flowserve Corporation
-0.2
Fiesta Restaurant Group
-0.2
Fresh Market (The)
-0.2
Top 10 as % of Net Assets
-4.2

Portfolio Holdings

View the complete list of holdings for this fund as of 3/31/2014. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap

Greatest Portfolio Overlap

Investment Themes as a Percentage of Assets

Distributions

NAV & Distributions


Start DateEnd Date
to

Learn more about distributions

Distributions

RECORD
DATE
EX-DATE PAYABLE
DATE
INCOME ($) SHORT
TERM
GAINS ($)
LONG
TERM
GAINS ($)
RETURN OF
CAPITAL ($)
TOTAL ($) REINVEST
PRICE ($)
12/11/2013 12/12/2013 12/12/2013 0.0000 0.2028 0.3520 - 0.5548 16.72
12/12/2012 12/13/2012 12/13/2012 0.1271 0.8221 0.1382 - 1.0874 12.11
12/14/2011 12/15/2011 12/15/2011 0.0171 0.3955 - - 0.4126 9.84

NAV History for

Fees & Expenses

Shareholder Fees (%)

(fees paid directly from your investment)

Maximum sales charge (load) imposed on purchases0.00
Maximum deferred sales charge0.00
Maximum sales charge (load) imposed on reinvested dividends0.00
Redemption fee (as a percentage of amount redeemed on shares held for less than 180 days)0.00

Annual Fund Operating Expenses (%)

(expenses that you pay each year as a percentage of the value of your investment)

Management fees 1.00
Distribution (12b-1) fees 0.00
Dividends on securities sold short 0.14
Other expenses 1.53
Total annual Fund operating expenses 2.67
Fee waivers and/or expense reimbursements (1.29)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.38

Important Disclosure Information

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. The Fund invests primarily in small-cap and micro-cap companies, which may involve considerably more risk than investing in larger-cap stocks. The Fund also invests primarily in a limited number of stocks, which may involve considerably more risk than a less concentrated portfolio because a decline in the value of these stocks would cause the Fund's overall value to decline to a greater degree. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund may sell securities short which involves selling a security it does not own in anticipation that the security's price will decline. Short sales present unlimited risk on an individual stock basis since the Fund may be required to buy the security sold short at a time when the security has appreciated in value. The Fund may invest up to 25% of its net assets in foreign securities, which may involve political, economic, currency, and other risks not encountered in U.S. investments. (Please see "Investing in Foreign Securities" in the prospectus.)

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

8/31/2010 12:00:00 AM
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