Royce International Discovery Fund (ROIMX)
647

At a Glance

Why invest in International Discovery?

  • Uses a fundamentally based, risk-aware approach to invest primarily in non-U.S. small- and mid-caps (generally market caps up to $5 billion), a large, diverse, and typically inefficient universe of more than 25,000 companies (Source: FactSet)
  • Employs a bottom-up approach to invest in companies with strong niche businesses, stable management, and sustainable growth patterns trading for less than Royce's estimate of their intrinsic value
  • Seeks companies with strong balance sheets, high returns on invested capital, high insider ownership, and a history of paying dividends

Fund Materials

PDF Factsheet
Link Summary Prospectus
Link Prospectus
Link Semiannual Report
Link Annual Report
Prospectuses & Reports
Manager Commentary

See All

As of 06/30/18

  • Small/Mid-Cap
    Core Approach
    $1.22B
    Avg. Market Cap
  • Low
    Volatility
    98%
    Active Share
  • Fund
    Longevity
    7+
    Years of History

Portfolio Management

"We're looking for international companies with a sustainable niche, promising growth prospects, and strong fundamentals that also have little analyst coverage and often low trading volumes."
Jim Harvey

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

QTR YTD 1YR 3YR 5YR SINCE INCEPT. DATE
International Discovery -4.15 -6.213.965.488.033.62 12/31/10
Russell Glo x US SC -3.45 -3.789.177.158.035.05 N/A

Annual Operating Expenses: Gross 2.79 Net 1.44

JUN YTD 1YR 3YR 5YR SINCE INCEPT. DATE
International Discovery -2.80 -6.213.965.488.033.62 12/31/10
Russell Glo x US SC -3.51 -3.789.177.158.035.05 N/A

Annual Operating Expenses: Gross 2.79 Net 1.44

JUL YTD 1YR 3YR 5YR SINCE INCEPT. DATE
International Discovery -0.25 -6.443.435.947.533.57 12/31/10
Russell Glo x US SC -0.22 -4.008.287.857.265.00 N/A

Annual Operating Expenses: Gross 2.79 Net 1.44

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 30 days of purchase may be subject to a 2% 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, 12b-1 distribution and service fees, and other expenses. Net operating expenses reflect contractual fee waivers and/or expense reimbursements. All expense information is reported as of the Fund’s 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 (excluding brokerage commissions, taxes, interest, litigation expenses, acquired fund fees and expenses, and other expenses not borne in the ordinary course of business) at or below 1.44% through April 30, 2019 and at or below 1.99% through April 30, 2028.

Cumulative Performance since Inception (12/31/10) and Market Cycle Peak

Inception-Current - 12/31/10 - 06/30/18
International Discovery30.6%
Russell Glo x US SC44.7%

Peak-Current - 07/03/14 - 06/30/18
International Discovery13.1%
Russell Glo x US SC17.8%

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 12/31/10 and 06/30/18

International Discovery$13,057.12
Russell Glo x US SC$14,468.46

Risk

Low Volatility vs. Peer Group as of 06/30/18

The Fund has a low volatility within its peer group of 77 International Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/18

The Fund outperformed the Russell Glo x US SC during all one downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg

Russell Glo x US SC Down Quarters

QUARTER ENDRUSSELL GLO X US SC (%)INTERNATIONAL DISCOVERY (%)SPREAD (%)
06/30/18-3.5-4.1-0.6
03/31/18-0.3-2.1-1.8
12/31/16-3.6-2.8+0.8
09/30/15-11.2-10.7+0.5
12/31/14-4.5-6.6-2.1
09/30/14-6.2-3.0+3.2
06/30/13-4.5-2.6+1.9
06/30/12-8.5-10.0-1.5
09/30/11-19.4-23.2-3.8
06/30/11-0.2-1.7-1.5

Capture Ratios Fund's First Full Quarter (12/31/10) to 06/30/18

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 06/30/18

Over the past 5 years, the Fund had a similar return to the Russell Global ex-U.S. Small Cap Index with lower volatility.
Over the past 3 years, the Fund produced lower volatility than the Russell Global ex-U.S. Small Cap Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 06/30/18

The Fund produced lower volatility than the Russell Glo x US SC and 50% of international small-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell Glo x US SC on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell Glo x US SC and 75% of international small-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
International Discovery0.7510.38
Russell Glo x US SC0.7111.07
Category Median0.8011.35
Best Quartile Breakpoint0.9310.75

Category Median and Best Quartile Breakpoint based on 77 international small-cap objective funds (oldest class only) with at least five years of history.
Sharpe Ratio Standard Deviation
International Discovery
Russell Glo x US SC
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/18

mstar-ROIMX

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.

Portfolio Diagnosticsas of 06/30/18

  ROIMX Russell Glo x US SC
Average Market Cap
1.22B
1.46B
98%
-
2017 Portfolio Turnover
90%
-
Weighted Average P/E,
16.4x
15.4x
Weighted Average P/B
2.1x
1.7x
Non-U.S. Investments (% of Net Assets)
96.4%
-
U.S. Investments (% of Net Assets)
0.0%
-

Portfolio Allocation

  • Total
    Holdings
    81


SECTORS
ROIMX (%) RUSSELL
GLO X US SC (%)
Industrials
24.6
-
Consumer Discretionary
13.8
-
Information Technology
13.2
-
Financials
13.1
-
Materials
8.1
-
Consumer Staples
7.3
-
Real Estate
6.6
-
Health Care
4.1
-
Energy
3.8
-
Telecommunication Services
2.0
-
Cash and Cash Equivalents
3.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Sonae SGPS
2.6
DFDS
2.5
Nilfisk Holding
2.3
Outsourcing
2.3
Biffa
2.3
Kyowa Exeo
2.1
Restore
2.1
Zenkoku Hosho
2.1
Hilton Food Group
2.0
Atento
1.9
RPC Group
1.9
Irish Residential Properties REIT
1.9
Canadian Western Bank
1.7
DP Eurasia
1.7
Gourmet Master
1.6
NS Solutions
1.6
International Meal Company Alimentacao
1.6
Parex Resources
1.6
Egyptian Financial Group-Hermes Holding Company
1.6
Open House
1.6
Top 20 as % of Net Assets
39.0

SECTORS
ROIMX (%) RUSSELL
GLO X US SC (%)
Industrials
24.6
-
Consumer Discretionary
13.8
-
Information Technology
13.2
-
Financials
13.1
-
Materials
8.1
-
Consumer Staples
7.3
-
Real Estate
6.6
-
Health Care
4.1
-
Energy
3.8
-
Telecommunication Services
2.0
-
Cash and Cash Equivalents
3.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Sonae SGPS
2.6
DFDS
2.5
Nilfisk Holding
2.3
Outsourcing
2.3
Biffa
2.3
Kyowa Exeo
2.1
Restore
2.1
Zenkoku Hosho
2.1
Hilton Food Group
2.0
Atento
1.9
RPC Group
1.9
Irish Residential Properties REIT
1.9
Canadian Western Bank
1.7
DP Eurasia
1.7
Gourmet Master
1.6
NS Solutions
1.6
International Meal Company Alimentacao
1.6
Parex Resources
1.6
Egyptian Financial Group-Hermes Holding Company
1.6
Open House
1.6
Top 20 as % of Net Assets
39.0

Portfolio Holdings

View the complete list of holdings for this fund as of 03/31/18. Unaudited schedule of portfolio holdings is presented for informational purposes only.
View the 03/31/18 holdings on SEC Form N-Q (unaudited) for the quarter ending 03/31/18.

Geographical Breakdown

Portfolio Country Breakdownas of 06/30/18

Countries% of net assets
(subject to change)
Japan20.1
United Kingdom10.4
Canada5.9
South Korea5.5
Denmark4.8
China4.8
Hong Kong4.4
Taiwan4.1
Brazil3.9
Australia3.5
India2.9
Netherlands2.8
Ireland2.7
Portugal2.6
Sweden2.3
Malaysia2.1
Spain1.9
Italy1.7
Mexico1.6
Egypt1.6
Philippines1.5
Germany1.2
Israel1.2
Turkey1.2
Greece1.0
Singapore0.5

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 ($) REINVEST
PRICE ($)
12/13/17 12/14/17 12/14/17 0.1714 - - - 0.1714 12.18
12/14/16 12/15/16 12/15/16 0.1623 - - - 0.1623 9.88
12/16/15 12/17/15 12/17/15 0.0236 - - - 0.0236 9.38
12/16/14 12/17/14 12/17/14 0.1384 - - - 0.1384 9.43
12/04/13 12/05/13 12/05/13 0.1958 - - - 0.1958 9.77
12/05/12 12/06/12 12/06/12 0.1550 - - - 0.1550 8.40
12/07/11 12/08/11 12/08/11 0.1311 - - - 0.1311 7.83

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 30 days) 2.00

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 0.25
Other expenses 1.54
Total annual Fund operating expenses 2.79
Fee waivers and/or expense reimbursements (1.35)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.44
The information above reflects the Fund’s amended contractual management fee rate as of February 1, 2018. 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 (excluding brokerage commissions, taxes, interest, litigation expenses, acquired fund fees and expenses, and other expenses not borne in the ordinary course of business) at or below 1.44% through April 30, 2019 and at or below 1.99% through April 30, 2028.

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 may invest a significant portion of its assets in foreign companies which may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic, currency, or other developments that are unique to a particular country or region. These risk factors may affect the prices of foreign securities issued by companies headquartered in developing countries more than those headquartered in developed countries. (Please see "Investing in Foreign Securities" in the prospectus.) Therefore, the prices of the securities of foreign companies in particular countries or regions may, at times, move in a different direction than those of the securities of U.S. companies. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund invests primarily in small and mid-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss.

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-Earnings, or P/E, Ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Fund's P/E ratio calculation excludes companies with zero or negative earnings. 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. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell Global ex-U.S. Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks, excluding the United States. Index returns include net reinvested dividends and/or interest income. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

Managed by Jim Harvey since 2013 (assistant portfolio manager 2010-2013)

12/31/2010 12:00:00 AM

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