Royce International Premier Fund (RYIPX, RIPNX, RINPX, RIPKX, RINRX)
44

At a Glance

Why invest in International Premier?

  • Focuses on a limited number of “premier” non-U.S. small-cap companies (generally market caps up to $3 billion) with discernible competitive advantages, high returns on invested capital, and sustainable, moat-like franchises
  • Seeks to identify companies with notable strengths in industry structure, competitive positioning, operational efficiency, financial track record, and corporate governance
  • Outperformed its benchmark, the Russell Global ex-U.S. Small Cap Index, for the 1-, 3-, 5-year, and since inception (12/31/10) periods ended 9/30/17

As of 09/30/17

  • Small-Cap
    Core Approach
    $2.21B
    Avg. Market Cap
  • Below Average
    Volatility
    99%
    Active Share
  • Fund
    Longevity
    6+
    Years of History

Portfolio Management

"We're seeking to build a portfolio of very high-quality, world-class businesses–those that are a-cyclical growers, can generate plentiful free cash, and have a genuine and defensible moat."
David Nadel

Performance

Average Annual Total Returns (%)

Outperformed Russell Global ex-U.S. Small Cap for the Quarter, Year To Date, 1-Year, 3-Year, 5-Year and since inception (12/31/10) periods as of 09/30/17.
QTR YTD 1YR 3YR 5YR SINCE INCEPT. DATE
International Premier 7.70 31.8923.3112.9812.048.24 12/31/10
Russell Glo x US SC 5.98 21.8817.487.138.775.16 N/A

Annual Operating Expenses: Gross 1.59 Net 1.19

NOV YTD 1YR 3YR 5YR SINCE INCEPT. DATE
International Premier 2.04 37.6140.2315.6312.218.70 12/31/10
Russell Glo x US SC 1.51 26.4228.499.579.415.59 N/A

Annual Operating Expenses: Gross 1.59 Net 1.19

DEC YTD 1YR 3YR 5YR SINCE INCEPT. DATE
International Premier -1.01 36.2240.2316.9611.648.48 12/31/10
Russell Glo x US SC -0.64 25.6127.7310.838.805.46 N/A

Annual Operating Expenses: Gross 1.59 Net 1.19

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 for the Investment Class and include management 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, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Investment Class'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 1.19% through April 30, 2018.

All performance and risk information presented in this material prior to the commencement date of Investment Class shares on 1/22/14 reflects Service Class results. Service Class shares bear an annual distribution expense that is not borne by Investment Class shares.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell Glo x US SC in 100% of all 5-Year periods; 89% of all 3-Year periods; and 69% of all 1-Year periods.

Relative Returns: Monthly Rolling Average Annual Return Periods Since Inception Through 09/30/17

periods beating
the index(%)
fund
avg(%)
index
avg(%)
5-year
22/22
100 7.9 5.3
3-year
41/46
89 7.5 5.3
1-year
48/70
69 7.7 5.5

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

The Fund outperformed the Russell Glo x US SC from the 7/3/14 index peak through current (9/30/17).
Inception-Current - 12/31/10 - 09/30/17
International Premier70.6%
Russell Glo x US SC40.5%

Peak-Current - 07/03/14 - 09/30/17
International Premier34.8%
Russell Glo x US SC14.3%

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 09/30/17

International Premier$17,060.47
Russell Glo x US SC$14,045.34

Risk

Below Average Volatility vs. Peer Group as of 09/30/17

The Fund has a below average volatility within its peer group of 80 International Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 09/30/17

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
Outperformed in 5 out of 7 down quarters.

Russell Glo x US SC Down Quarters

QUARTER ENDRUSSELL GLO X US SC (%)INTERNATIONAL PREMIER (%)SPREAD (%)
09/30/15-11.2-5.8+5.4
12/31/14-4.5-5.3-0.8
09/30/14-6.2-5.9+0.3
06/30/13-4.5+0.5+5.0
06/30/12-8.5-5.4+3.1
09/30/11-19.4-20.4-1.0
06/30/11-0.2+1.4+1.6

Capture Ratios Fund's First Full Quarter (12/31/10) to 09/30/17

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 09/30/17

Over the past 5 years, the Fund outperformed the Russell Global ex-U.S. Small Cap Index with lower volatility.
Over the past 3 years, the Fund outperformed the Russell Global ex-U.S. Small Cap Index.
From the Fund's inception, the Fund outperformed the Russell Global ex-U.S. Small Cap Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/17

The Fund beat the Russell Glo x US SC and performed within the top 25% of international small-cap objective funds 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 Premier1.1110.53
Russell Glo x US SC0.8011.07
Category Median0.9811.27
Best Quartile Breakpoint1.0810.60

Category Median and Best Quartile Breakpoint based on 80 international small-cap objective funds (oldest class only) with at least five years of history.
Sharpe Ratio Standard Deviation
International Premier
Russell Glo x US SC
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/17

mstar-RIPNX

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 09/30/17

  RIPNX Russell Glo x US SC
Average Market Cap
2.21B
1.33B
99%
-
2016 Portfolio Turnover
67%
-
Weighted Average P/E,
26.4x
15.7x
Weighted Average P/B
3.9x
1.7x
Non-U.S. Investments (% of Net Assets)
96.5%
-
U.S. Investments (% of Net Assets)
0.0%
-

Portfolio Allocation

  • Total
    Holdings
    51


SECTORS
RIPNX (%) RUSSELL
GLO X US SC (%)
Industrials
22.8
19.4
Health Care
18.4
6.6
Information Technology
17.0
12.6
Materials
11.6
11.1
Financials
11.2
10.0
Consumer Discretionary
7.8
16.1
Consumer Staples
3.4
6.7
Real Estate
2.2
10.3
Energy
2.0
3.7
Utilities
-
2.5
Telecommunication Services
-
0.9
Cash and Cash Equivalents
3.5
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
VZ Holding
3.3
Mayr-Melnhof Karton
3.1
Meitec Corporation
3.0
Partners Group Holding
2.9
USS
2.8
Bajaj Finance
2.6
OdontoPrev
2.5
Vakrangee
2.3
Relo Group
2.2
Santen Pharmaceutical
2.2
Victrex
2.1
Thermador Groupe
2.1
TGS-NOPEC Geophysical
2.0
Carl Zeiss Meditec
2.0
TOTVS
2.0
IPH
2.0
Fisher & Paykel Healthcare
2.0
Hansen Technologies
2.0
ITE Group
1.9
Sugi Holdings
1.9
Top 20 as % of Net Assets
46.9

SECTORS
RIPNX (%) RUSSELL
GLO X US SC (%)
Industrials
21.6
-
Information Technology
19.6
-
Health Care
16.5
-
Materials
11.4
-
Financials
9.1
-
Consumer Discretionary
7.9
-
Consumer Staples
2.4
-
Real Estate
2.2
-
Energy
1.8
-
Cash and Cash Equivalents
7.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
VZ Holding
3.2
USS
2.8
Meitec Corporation
2.7
Vakrangee
2.7
Partners Group Holding
2.6
Mayr-Melnhof Karton
2.5
Relo Group
2.2
Bajaj Finance
2.1
Burkhalter Holding
2.1
IPH
1.9
XP Power
1.9
Sugi Holdings
1.9
Thermador Groupe
1.9
Carl Zeiss Meditec
1.9
Ai Holdings
1.9
ITE Group
1.9
Hansen Technologies
1.9
Trade Me Group
1.8
OdontoPrev
1.8
Frutarom Industries
1.8
Top 20 as % of Net Assets
43.5

Portfolio Holdings

View the complete list of holdings for this fund as of 09/30/17. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Geographical Breakdown

Portfolio Country Breakdownas of 09/30/17

Countries% of net assets
(subject to change)
Japan17.5
United Kingdom16.0
Switzerland9.9
Australia8.6
Germany6.5
India6.5
Brazil4.5
Canada3.7
New Zealand3.5
Sweden3.5
France3.3
Austria3.1
Norway2.0
Singapore1.8
Italy1.7
Israel1.6
China1.6
Hong Kong1.3

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 0.1492 - - - 0.1492 12.72
12/14/16 12/15/16 12/15/16 0.2825 0.0110 - - 0.2935 9.17
12/16/15 12/17/15 12/17/15 0.3165 - - - 0.3165 9.70
12/16/14 12/17/14 12/17/14 0.1584 0.1706 0.1391 - 0.4681 8.61

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 0.00
Other expenses 0.59
Total annual Fund operating expenses 1.59
Fee waivers and/or expense reimbursements (0.40)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.19
Royce & Associates has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Investment Class'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 1.19% through April 30, 2018.

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, 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-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. The Fund also 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 one 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.)

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 David Nadel since 2010, assistant Mark Rayner since 2014

1/21/2014 12:00:00 AM

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