639
9/30/2014
11/30/2014
12/19/2014
8/31/2010

At a Glance

Why invest in
Opportunity Select?

  • Investment goal of long-term growth of capital
  • May invest in both long and short positions
Long portfolio: Focused portfolio, theme-based, opportunistic value approach
  • Invests primarily in small-cap stocks, up to $2.5 billion
  • Managed by Bill Hench, assistant Buzz Zaino, both since 2010 inception

As of 9/30/2014

Portfolio Management




Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 3-Year and since inception (8/31/2010) periods as of 9/30/2014
QTR YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select -10.69 -7.751.4827.0117.63 8/31/2010
Russell 2000 -7.36 -4.413.9321.2617.54 N/A

Annual Operating Expenses: Gross 1.78 Net 1.29

NOV YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select -0.54 -7.03-3.3022.0817.10 8/31/2010
Russell 2000 0.09 1.993.9918.3618.59 N/A

Annual Operating Expenses: Gross 1.78 Net 1.29

DEC YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select 1.35 -5.77-1.3224.9617.24 8/31/2010
Russell 2000 2.02 4.057.6520.7218.90 N/A

Annual Operating Expenses: Gross 1.78 Net 1.29

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. Acquired fund fees and expenses 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.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 in 100% of all 3-Year periods; and 68% of all 1-Year periods.

Relative Returns: Monthly Rolling Average Annual Return Periods Since Inception Through 9/30/2014

periods beating
the index(%)
fund
avg(%)
index
avg(%)
3-year
14/14
100 19.5 15.9
1-year
26/38
68 19.8 15.8

Cumulative Performance since Inception (8/31/10) and Market Cycle Peak

The Fund outperformed the Russell 2000 from its inception and the 4/29/11 index peak through 9/30/14.
Inception-Current - 08/31/2010 - 09/30/2014
Opportunity Select94.0%
Russell 200093.4%

Peak-Current - 04/29/2011 - 09/30/2014
Opportunity Select38.4%
Russell 200033.5%

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 8/31/2010 and 9/30/2014

Opportunity Select$19,404.19
Russell 2000$19,343.70

Portfolio Impactas of 9/30/2014

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Health Care
4.2
-11.5
-0.5
Financials
7.3
-12.2
-1.0
Consumer Discretionary
12.9
-8.9
-1.2
Materials
12.2
-8.6
-1.2
Energy
6.9
-26.4
-1.8
Information Technology
29.8
-6.1
-2.0
Industrials
18.6
-12.3
-2.2
Cash
8.2
0.0
0.0

Top Contributors

INDUSTRYSECTORGAIN (%)
Professional ServicesIndustrials0.3
Air Freight & LogisticsIndustrials0.3
Multiline RetailConsumer Discretionary0.2
Specialty RetailConsumer Discretionary0.1
AirlinesIndustrials0.0

Top Detractors

INDUSTRYSECTORGAIN (%)
Oil, Gas & Consumable FuelsEnergy-1.3
Semiconductors & Semiconductor EquipmentInformation Technology-1.0
MachineryIndustrials-0.9
ChemicalsMaterials-0.7
Electrical EquipmentIndustrials-0.6

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
CTPartners Executive SearchProfessional ServicesIndustrials0.3
RF Micro DevicesSemiconductors & Semiconductor EquipmentInformation Technology0.3
XPO LogisticsAir Freight & LogisticsIndustrials0.3
Amber RoadInternet Software & ServicesInformation Technology0.2
Noranda Aluminum Holding CorporationMetals & MiningMaterials0.2

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
General CableElectrical EquipmentIndustrials-0.6
Carpenter TechnologyMetals & MiningMaterials-0.5
Commercial Vehicle GroupMachineryIndustrials-0.4
Goodrich PetroleumOil, Gas & Consumable FuelsEnergy-0.4
McClatchy Company (The) Cl. AMediaConsumer Discretionary-0.4
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Consumer Staples
0.3
4.8
0.0
Energy
8.8
-12.6
-0.2
Health Care
2.8
-0.8
-0.2
Financials
9.1
-7.5
-0.5
Industrials
19.3
-7.2
-1.1
Consumer Discretionary
13.0
-10.5
-1.3
Information Technology
28.8
-3.4
-1.6
Materials
9.8
-14.2
-1.7
Cash
8.1
0.0
0.0

Top Contributors

INDUSTRYSECTORGAIN (%)
Auto ComponentsConsumer Discretionary0.5
Air Freight & LogisticsIndustrials0.4
AirlinesIndustrials0.3
Semiconductors & Semiconductor EquipmentInformation Technology0.3
Professional ServicesIndustrials0.3

Top Detractors

INDUSTRYSECTORGAIN (%)
Electrical EquipmentIndustrials-1.3
Communications EquipmentInformation Technology-1.0
Textiles, Apparel & Luxury GoodsConsumer Discretionary-0.9
ChemicalsMaterials-0.8
InsuranceFinancials-0.6

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RF Micro DevicesSemiconductors & Semiconductor EquipmentInformation Technology1.0
Tower InternationalAuto ComponentsConsumer Discretionary0.5
Warren ResourcesOil, Gas & Consumable FuelsEnergy0.5
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology0.4
XPO LogisticsAir Freight & LogisticsIndustrials0.4

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
QuiksilverTextiles, Apparel & Luxury GoodsConsumer Discretionary-0.9
Hercules OffshoreEnergy Equipment & ServicesEnergy-0.8
General CableElectrical EquipmentIndustrials-0.8
Extreme NetworksCommunications EquipmentInformation Technology-0.6
NeoPhotonics CorporationSemiconductors & Semiconductor EquipmentInformation Technology-0.5
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Financials
10.0
6.3
1.2
Industrials
19.3
3.5
1.0
Energy
9.1
-3.6
0.6
Information Technology
27.9
4.9
0.4
Health Care
2.5
10.4
0.0
Consumer Discretionary
13.3
-1.0
0.0
Consumer Staples
0.4
0.5
0.0
Materials
8.8
1.7
-0.6
Cash
8.6
0.0
0.0

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology1.2
AirlinesIndustrials0.7
BanksFinancials0.7
Real Estate Management & DevelopmentFinancials0.6
Air Freight & LogisticsIndustrials0.6

Top Detractors

INDUSTRYSECTORGAIN (%)
Electrical EquipmentIndustrials-1.2
InsuranceFinancials-0.7
Textiles, Apparel & Luxury GoodsConsumer Discretionary-0.6
MarineIndustrials-0.5
ChemicalsMaterials-0.5

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology1.0
RF Micro DevicesSemiconductors & Semiconductor EquipmentInformation Technology1.0
JetBlue AirwaysAirlinesIndustrials0.7
Patterson-UTI EnergyEnergy Equipment & ServicesEnergy0.6
Kennedy-Wilson HoldingsReal Estate Management & DevelopmentFinancials0.6

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Hercules OffshoreEnergy Equipment & ServicesEnergy-1.0
General CableElectrical EquipmentIndustrials-0.7
QuiksilverTextiles, Apparel & Luxury GoodsConsumer Discretionary-0.6
Rubicon TechnologySemiconductors & Semiconductor EquipmentInformation Technology-0.6
MBIAInsuranceFinancials-0.5
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
27.1
107.8
24.4
Consumer Discretionary
13.9
198.3
23.6
Industrials
16.9
135.9
19.2
Financials
11.5
172.6
16.2
Energy
9.6
96.6
9.0
Materials
8.2
70.1
7.9
Health Care
1.2
111.2
1.6
Consumer Staples
1.1
-17.2
0.2
Telecommunication Services
0.0
-8.1
0.0
Cash
10.6
0.2
0.0

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology17.2
Household DurablesConsumer Discretionary9.9
Thrifts & Mortgage FinanceFinancials8.0
SoftwareInformation Technology6.7
MachineryIndustrials6.5

Top Detractors

INDUSTRYSECTORGAIN (%)
Internet Software & ServicesInformation Technology-1.3
Electrical EquipmentIndustrials-1.2
InsuranceFinancials-1.0
MarineIndustrials-1.0
Food & Staples RetailingConsumer Staples-0.8

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Standard PacificHousehold DurablesConsumer Discretionary5.7
Ellie MaeSoftwareInformation Technology5.2
Radian GroupThrifts & Mortgage FinanceFinancials4.1
Lithia Motors Cl. ASpecialty RetailConsumer Discretionary3.7
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology3.4

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Walter EnergyMetals & MiningMaterials-1.3
MBIAInsuranceFinancials-1.1
CarboniteInternet Software & ServicesInformation Technology-1.0
Powerwave TechnologiesCommunications EquipmentInformation Technology-1.0
SUPERVALUFood & Staples RetailingConsumer Staples-0.9
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)

Top Contributors

INDUSTRYSECTORGAIN (%)

Top Detractors

INDUSTRYSECTORGAIN (%)

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)

Risk

Down Market Performance Comparisonas of 9/30/2014

The Fund outperformed the Russell 2000 during one out of four 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 (%)
9/30/2014-7.4-10.7-3.3
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

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 9/30/2014

Sharpe RatioStandard Deviation

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

Composition

Morningstar Style Map™ as of 6/30/2014

mstar-ROSFX

The Morningstar Style Map is the Morningstar Style Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. The Morningstar Style Box is designed to reveal a fund's investment strategy. The Morningstar Ownership Zone provides detail about a portfolio's investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. The shaded area represents the center 75% of the Fund's assets while the plot point in the middle represents the weighted average of its holdings. Over time, the shape and location of a fund's ownership zone may vary.

Market Cap Exposureas of 9/30/2014

  • Avg.
    Market Cap
    $724.0M

Diagnosticsas of 9/30/2014

Weighted Avg. P/B
1.5x
2013 Portfolio Turnover
129%
102%

Portfolio Exposureas of 9/30/2014

EXPOSURE(%) NUMBER OF POSITIONS
Long 93.1 94
Short -5.0 18
Net 88.1 112
Gross 98.1

Portfolio Allocation as of 9/30/2014

  • Focused 
  • Total
    Holdings
    112
  • Holdings ≥ 75%
    of Total Investments
    52

SECTORSLONG(%)SHORT(%)NET(%)Russell 2000 (%)
Information Technology
32.6
-0.2
32.8
18.0
Industrials
16.5
-0.4
17.0
13.8
Materials
13.4
-0.1
13.5
5.0
Consumer Discretionary
14.0
-2.9
17.0
13.3
Financials
7.4
-0.4
7.9
23.8
Health Care
5.4
-
5.4
13.4
Energy
3.7
-
3.7
5.5
Diversified Investment Companies
-
-0.2
0.2
-
Consumer Staples
-
-0.7
0.7
3.3
Telecommunication Services
-
-
-
0.8
Utilities
-
-
-
3.2
Cash and Cash Equivalents
11.9
-
11.9
-
LONG POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Extreme Networks
2.4
AK Steel Holding Corporation
2.3
RTI International Metals
2.0
Amber Road
2.0
Carpenter Technology
1.9
RF Micro Devices
1.9
Owens & Minor
1.8
Logitech International
1.8
Newport Corporation
1.7
Mentor Graphics
1.7
Top 10 as % of Net Assets
19.5
SHORT POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Men's Wearhouse (The)
-0.5
Popeyes Louisiana Kitchen
-0.5
Stifel Financial
-0.4
Vitamin Shoppe
-0.4
Fresh Market (The)
-0.4
Life Time Fitness
-0.4
Fiesta Restaurant Group
-0.4
Sonic Automotive Cl. A
-0.3
Sprouts Farmers Markets
-0.3
Lumber Liquidators Holdings
-0.3
Top 10 as % of Net Assets
-3.9

Portfolio Holdings

View the complete list of holdings for this fund as of 9/30/2014 on SEC Form N-Q (unaudited) for the quarter ending 9/30/2014.

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 ($) REINVEST
PRICE ($)
12/16/2014 12/17/2014 12/17/2014 0.0000 0.1374 0.3696 - 0.5070 16.13
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 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 180 days) 1.00

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 0.05
Other expenses 0.73
Total annual Fund operating expenses 1.78
Fee waivers and/or expense reimbursements (0.49)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.29

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 companies, which may involve considerably more risk than investing in larger-cap stocks. The Fund generally invests a significant portion of its assets in a limited number of stocks, which may involve considerably more risk than a more broadly diversified portfolio because a decline in the value of any 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 (measured at the time of investment), 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. 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. Please read the prospectus for a more complete discussion of risk. 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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