Royce Low-Priced Stock Fund (RYLPX, RLPHX, RLPIX, RLPKX, RLPRX)
195

At a Glance

Why invest in Low-Priced Stock?

  • Invests primarily in low-priced stocks (those with an average cost per share in the portfolio of less than $25), a historically inefficient, institutionally neglected area of the market ripe with potential opportunities
  • Small-cap core fund (generally market caps up to $3 billion) that combines multiple investment themes by investing in low-priced companies with solid fundamentals and/or prospects selling at prices that Royce believes do not fully reflect these attributes
  • Averaged an 9.9% return over all 169 10-year monthly rolling return periods ended 12/31/17 from inception (12/15/93)

As of 12/31/17

  • Small-Cap
    Core Approach
    $797.7M
    Avg. Market Cap
  • Above Average
    Volatility
    95%
    Active Share
  • Fund
    Longevity
    24+
    Years of History

Portfolio Management

"Our stock selection process is strictly bottom up and fundamentally based. We are highly disciplined about buying companies at what we think is the right price and selling them at the right time, too."
Jim Stoeffel

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 20-Year and since inception (12/15/93) periods as of 12/31/17.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Low-Priced Stock 2.33 9.159.154.114.093.317.658.609.90 12/15/93
Russell 2000 3.34 14.6514.659.9614.128.7111.177.899.31 N/A

Annual Operating Expenses: Gross 2.92 Net 1.94

JAN YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Low-Priced Stock 1.13 1.1310.805.963.794.027.948.759.91 12/15/93
Russell 2000 2.61 2.6117.1812.1213.339.7611.578.129.39 N/A

Annual Operating Expenses: Gross 2.92 Net 1.94

FEB YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Low-Priced Stock -2.35 -1.255.883.333.513.718.078.269.78 12/15/93
Russell 2000 -2.78 -0.2410.439.0112.339.7311.517.679.24 N/A

Annual Operating Expenses: Gross 2.92 Net 1.94

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. 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 gross total annual operating expenses for the R Class and include management fees, 12b-1 distribution and service fees, 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 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 R 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 1.84% through April 30, 2018, and at or below 1.99% through April 30, 2027. 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.

All performance and risk information presented in this material prior to the commencement date of R Class shares on 5/21/07 reflect Service Class results. R Class shares bear annual expenses that are higher than those borne by Service Class shares. If R Class's annual expenses had been reflected, total returns prior to 5/21/07 would have been lower.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 in 61% of all 5-Year periods; and 51% of all 1-Year periods.

For 82% of the periods, 10-year average annual total returns were greater than 5%.

Relative Returns: Monthly Rolling Average Annual Return Periods 20 Years Through 12/31/17

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
60/121
50 7.4 6.7
5-year
111/181
61 8.3 8.2
1-year
116/229
51 10.7 9.9

Absolute Returns: 10-Year Monthly Rolling Return PeriodsNumber of 10-Year Average Annual Return Periods Since the Fund’s Inception

Return Range Periods % in Range
> 10% 81 48
> 5% and ≤ 10% 58 34
> 0% and ≤ 5% 30 18
≤ 0% 0 0

The Fund averaged a 9.9% return over all 169 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 in one of the two previous full market cycle periods.
Peak-Peak - 07/13/07 - 04/29/11
Low-Priced Stock25.6%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Low-Priced Stock-6.3%
Russell 200058.5%

Peak-Current - 06/23/15 - 12/31/17
Low-Priced Stock6.1%
Russell 200022.9%

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 12/15/93 and 12/31/17

Low-Priced Stock$96,665.53
Russell 2000$85,057.93

Risk

Above Average Volatility vs. Peer Group as of 12/31/17

The Fund has a above average volatility within its peer group of 520 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 12/31/17

The Fund outperformed the Russell 2000 during four out of six downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)LOW-PRICED STOCK (%)SPREAD (%)
03/31/16-1.5-0.8+0.7
09/30/15-11.9-15.8-3.9
09/30/14-7.4-9.9-2.5
06/30/12-3.5-11.4-7.9
09/30/11-21.9-23.4-1.5
06/30/11-1.6-3.5-1.9
06/30/10-9.9-8.7+1.2
03/31/09-15.0-7.8+7.2
12/31/08-26.1-26.0+0.1
09/30/08-1.1-11.9-10.8
03/31/08-9.9-5.3+4.6
12/31/07-4.6-3.7+0.9
09/30/07-3.1-3.5-0.4
06/30/06-5.0-5.5-0.5
03/31/05-5.3-4.6+0.7
09/30/04-2.9-0.3+2.6
03/31/03-4.5-8.2-3.7

Capture Ratios Fund's First Full Quarter (12/31/93) to 12/31/17

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 12/31/17

From the Fund's inception, the Fund outperformed the Russell 2000 Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 12/31/17

Sharpe RatioStandard Deviation
Low-Priced Stock0.2521.18
Russell 20000.5019.90
Category Median0.5019.57
Best Quartile Breakpoint0.5518.69

Category Median and Best Quartile Breakpoint based on 424 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Low-Priced Stock
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 12/31/17

mstar-RLPRX

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 12/31/17

  RLPRX Russell 2000
Average Market Cap
797.7M
1.86B
95%
-
2017 Portfolio Turnover
26%
-
Weighted Average P/E,
22.2x
22.8x
Weighted Average P/B
2.0x
2.3x
U.S. Investments (% of Net Assets)
82.4%
-
Non-U.S. Investments (% of Net Assets)
16.0%
-

Portfolio Allocation

  • Total
    Holdings
    152


SECTORS
RLPRX (%) RUSSELL
2000 (%)
Information Technology
23.1
16.6
Industrials
20.2
15.4
Consumer Discretionary
19.2
12.5
Financials
13.4
17.8
Energy
7.7
4.0
Health Care
7.0
15.3
Materials
6.0
4.6
Telecommunication Services
0.7
0.8
Consumer Staples
0.6
2.8
Real Estate
0.5
6.7
Utilities
-
3.5
Cash and Cash Equivalents
1.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Urban Outfitters
1.1
Shoe Carnival
1.1
American Eagle Outfitters
1.1
Hamilton Lane Cl. A
0.9
Orbotech
0.9
Sprott
0.9
Thor Industries
0.9
Ashmore Group
0.9
DSW Cl. A
0.9
Guess?
0.9
Stoneridge
0.9
Werner Enterprises
0.9
Genworth MI Canada
0.9
Silvercrest Asset Management Group Cl. A
0.9
CryoLife
0.9
KBR
0.8
Buckle (The)
0.8
Vera Bradley
0.8
MCBC Holdings
0.8
Carbonite
0.8
Top 20 as % of Net Assets
18.1

SECTORS
RLPRX (%) RUSSELL
2000 (%)
Information Technology
23.0
-
Industrials
20.4
-
Consumer Discretionary
18.1
-
Financials
13.1
-
Energy
7.5
-
Health Care
7.1
-
Materials
5.9
-
Telecommunication Services
0.7
-
Consumer Staples
0.6
-
Real Estate
0.5
-
Cash and Cash Equivalents
3.0
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Urban Outfitters
1.1
American Eagle Outfitters
1.0
Guess?
1.0
Hamilton Lane Cl. A
1.0
Stoneridge
0.9
Ares Management L.P.
0.9
Clarkson
0.9
Shoe Carnival
0.9
Werner Enterprises
0.9
Ashmore Group
0.9
Orbotech
0.9
MCBC Holdings
0.9
Sprott
0.9
Genworth MI Canada
0.9
Resources Connection
0.9
CryoLife
0.9
Value Partners Group
0.8
Modine Manufacturing
0.8
DSW Cl. A
0.8
Brooks Automation
0.8
Top 20 as % of Net Assets
18.1

Portfolio Holdings

View the complete list of holdings for this fund as of 12/31/17. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap - U.S. Equity Funds

Greatest Portfolio Overlap - U.S. Equity Funds

Geographical Breakdown

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 0.0000 0.0353 0.4851 - 0.5204 7.78
12/14/16 12/15/16 12/15/16 0.0116 - 0.7289 - 0.7405 7.83
12/16/15 12/17/15 12/17/15 0.0000 - 0.7205 - 0.7205 7.34
12/16/14 12/17/14 12/17/14 0.0000 - 3.6074 - 3.6074 8.86
12/04/13 12/05/13 12/05/13 0.0000 - 1.9362 - 1.9362 12.85
12/05/12 12/06/12 12/06/12 0.1039 - 0.9089 - 1.0128 13.14
12/07/11 12/08/11 12/08/11 0.1274 0.0087 1.1869 - 1.3230 14.11
12/08/10 12/09/10 12/09/10 0.0807 - 0.1379 - 0.2186 17.60
12/08/09 12/09/09 12/09/09 0.0004 - - - 0.0004 13.42

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) 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 0.50
Other expenses 1.32
Acquired fund fees and expenses 0.10
Total annual Fund operating expenses 2.92
Fee waivers and/or expense reimbursements (0.98)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.94
Royce & Associates has contractually agreed to waive fees and/or reimburse operating expenses to the extent necessary to maintain the R 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 1.84% through April 30, 2018, and at or below 1.99% through April 30, 2026. 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.

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 higher-priced or low-priced small-cap and micro-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. 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-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 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.

Managed by Jim Stoeffel since 2014 (assistant portfolio manager 2013-2014), assistant portfolio managers Bill Hench since 2014, and Brendan Hartman since 2016

5/21/2007 12:00:00 AM

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