13

At a Glance

Why invest in Micro-Cap?

  • One of the oldest open-end funds dedicated to investing in micro-cap stocks (generally market caps up to $1 billion)
  • Core approach that combines multiple investment themes and offers wide exposure to micro-cap stocks by investing in companies with strong fundamentals and/or prospects selling at prices that Royce believes do not fully reflect these attributes
  • Approach emphasizes the intersection of valuation with fundamental strength and/or excellent growth or turnaround potential

As of 06/30/16

  • Micro-Cap
    Core Approach
    $382.9M
    Avg. Market Cap
  • Above Average
    Volatility
    90%
    Active Share
  • Fund
    Longevity
    24+
    Years of History

Portfolio Management

"The micro-cap universe offers plenty of opportunities for us to find companies that are lightly researched or mispriced. Using multiple approaches gives us exposure to the entire asset class while our discipline keeps us focused on the fundamental business strengths that we think can create strong long-term performance."
Jim Stoeffel

Performance

Average Annual Total Returns (%)

Outperformed Russell Microcap for the Year To Date period as of 06/30/16. Outpaced Russell 2000 for the 20-Year and since inception (12/31/91) periods as of 06/30/16.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Micro-Cap 0.36 -0.72-12.74-0.97-1.582.896.408.5910.44 12/31/91
Russell Microcap 3.97 -1.68-12.065.958.204.316.46N/AN/A N/A
Russell 2000 3.79 2.22-6.737.098.356.206.967.619.13 N/A

Annual Operating Expenses: 1.50

AUG YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Micro-Cap 1.89 6.764.210.062.073.767.309.2110.69 12/31/91
Russell Microcap 2.70 6.263.797.1113.025.237.62N/AN/A N/A
Russell 2000 1.77 10.238.598.5312.857.048.138.219.40 N/A

Annual Operating Expenses: 1.50

SEP YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Micro-Cap 1.27 8.129.54-1.245.014.058.709.2510.72 12/31/91
Russell Microcap 2.83 9.267.845.9916.105.589.30N/AN/A N/A
Russell 2000 1.28 11.6511.756.8415.587.209.768.159.43 N/A

Annual Operating Expenses: 1.50

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 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. Operating expenses reflect the Fund's total annual operating expenses for the Investment Class as of the Fund's most current prospectus and include management fees, other expenses and acquired fund fees and expense. 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 Microcap in 82% of all 10-Year periods; 69% of all 5-Year periods; and 54% of all 1-Year periods.

For 94% of the periods, 10-year average annual total returns were greater than 5%; For 68% of the periods, 10-year average annual total returns were greater than 10%.

Relative Returns: Monthly Rolling Average Annual Return Periods Since Russell Microcap's Inception Through 06/30/16

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
60/73
82 8.7 6.3
5-year
92/133
69 9.0 7.4
1-year
98/181
54 10.2 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% 119 68
> 5% and ≤ 10% 46 26
> 0% and ≤ 5% 10 6
≤ 0% 0 0

The Fund averaged a 11.3% return over all 175 10-year monthly rolling return periods.

Market Cycle Performance

Peak-Peak - 07/12/07 - 03/05/14
Micro-Cap32.6%
Russell Microcap44.7%

Peak-Peak - 03/05/14 - 06/23/15
Micro-Cap-4.3%
Russell Microcap6.4%

Peak-Current - 06/23/15 - 06/30/16
Micro-Cap-15.0%
Russell Microcap-14.9%

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 06/30/00 and 06/30/16

Micro-Cap$32,509.28
Russell Microcap$27,094.44

The since inception performance above dates to the inception of the Russell Microcap on 6/30/2000. The Fund's inception date (12/31/1991) preceded the inception of the index.

Portfolio Impactas of 06/30/16

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Materials
4.55
16.32
0.65
Industrials
20.00
2.70
0.53
Utilities
0.24
70.02
0.20
Health Care
11.70
0.00
0.11
Financials
13.42
0.74
0.08
Consumer Staples
0.48
16.25
0.06
Telecommunication Services
0.49
-1.78
-0.01
Energy
4.37
-3.10
-0.15
Consumer Discretionary
16.30
-1.23
-0.27
Information Technology
22.50
-2.27
-0.49
Cash
5.94
0.06
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Metals & MiningMaterials0.73
Auto ComponentsConsumer Discretionary0.50
MachineryIndustrials0.37
InsuranceFinancials0.24
Electric UtilitiesUtilities0.20

Top Detractors

INDUSTRYSECTORGAIN (%)
Specialty RetailConsumer Discretionary-0.80
SoftwareInformation Technology-0.40
Professional ServicesIndustrials-0.28
Technology Hardware, Storage & PeripheralsInformation Technology-0.22
Oil, Gas & Consumable FuelsEnergy-0.16

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Pretium ResourcesMetals & MiningMaterials0.36
eHealthInsuranceFinancials0.24
XenoPortPharmaceuticalsHealth Care0.22
McEwen MiningMetals & MiningMaterials0.22
Olympic SteelMetals & MiningMaterials0.21

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
SeaChange InternationalSoftwareInformation Technology-0.31
LipocinePharmaceuticalsHealth Care-0.28
Malibu Boats Cl. ALeisure ProductsConsumer Discretionary-0.22
Heidrick & Struggles InternationalProfessional ServicesIndustrials-0.20
Vera BradleyTextiles, Apparel & Luxury GoodsConsumer Discretionary-0.19
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Consumer Discretionary
16.66
4.14
0.84
Information Technology
23.20
2.63
0.81
Materials
4.42
13.86
0.62
Telecommunication Services
0.56
37.43
0.21
Utilities
0.12
71.83
0.21
Consumer Staples
0.45
18.66
0.05
Industrials
20.09
1.08
0.03
Financials
12.92
-2.38
-0.32
Energy
4.25
-13.10
-0.67
Health Care
11.95
-12.10
-1.76
Cash
5.39
0.13
0.01

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology1.04
Metals & MiningMaterials1.03
Electronic Equipment, Instruments & ComponentsInformation Technology1.02
Auto ComponentsConsumer Discretionary0.71
Diversified Consumer ServicesConsumer Discretionary0.36

Top Detractors

INDUSTRYSECTORGAIN (%)
PharmaceuticalsHealth Care-0.74
BiotechnologyHealth Care-0.70
Professional ServicesIndustrials-0.62
SoftwareInformation Technology-0.54
ChemicalsMaterials-0.41

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Olympic SteelMetals & MiningMaterials0.45
Silicon Motion Technology ADRSemiconductors & Semiconductor EquipmentInformation Technology0.41
Pretium ResourcesMetals & MiningMaterials0.40
McEwen MiningMetals & MiningMaterials0.35
FabrinetElectronic Equipment, Instruments & ComponentsInformation Technology0.34

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
SeaChange InternationalSoftwareInformation Technology-0.46
Ardmore ShippingOil, Gas & Consumable FuelsEnergy-0.44
LipocinePharmaceuticalsHealth Care-0.37
BioAmberChemicalsMaterials-0.33
Gulf Island FabricationEnergy Equipment & ServicesEnergy-0.31
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Telecommunication Services
0.79
48.41
0.30
Utilities
0.06
71.83
0.21
Consumer Staples
0.80
-11.24
-0.28
Information Technology
22.61
-4.41
-0.38
Financials
11.97
-9.37
-1.03
Materials
4.58
-19.02
-1.05
Energy
4.83
-30.70
-1.79
Consumer Discretionary
16.11
-14.02
-1.97
Health Care
12.56
-13.99
-2.10
Industrials
20.91
-13.89
-3.35
Cash
4.76
0.17
0.01
Unclassified
0.00
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Electronic Equipment, Instruments & ComponentsInformation Technology1.10
Semiconductors & Semiconductor EquipmentInformation Technology0.92
Auto ComponentsConsumer Discretionary0.83
Diversified Telecommunication ServicesTelecommunication Services0.31
Household DurablesConsumer Discretionary0.23

Top Detractors

INDUSTRYSECTORGAIN (%)
Specialty RetailConsumer Discretionary-2.60
Energy Equipment & ServicesEnergy-1.29
Capital MarketsFinancials-0.87
Professional ServicesIndustrials-0.79
SoftwareInformation Technology-0.79

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
FabrinetElectronic Equipment, Instruments & ComponentsInformation Technology0.58
Silicon Motion Technology ADRSemiconductors & Semiconductor EquipmentInformation Technology0.45
Theravance BiopharmaPharmaceuticalsHealth Care0.42
Smith & Wesson Holding CorporationLeisure ProductsConsumer Discretionary0.41
Pretium ResourcesMetals & MiningMaterials0.40

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Container Store Group (The)Specialty RetailConsumer Discretionary-0.52
BioDelivery Sciences InternationalPharmaceuticalsHealth Care-0.49
Horsehead Holding CorporationMetals & MiningMaterials-0.48
BioAmberChemicalsMaterials-0.48
SeaChange InternationalSoftwareInformation Technology-0.47
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
18.51
24.90
3.55
Health Care
11.35
40.12
2.65
Financials
10.65
16.75
1.05
Industrials
22.39
4.56
0.71
Consumer Discretionary
15.99
-2.27
0.61
Telecommunication Services
0.55
89.86
0.40
Utilities
0.08
68.78
0.21
Consumer Staples
1.11
-20.25
-0.43
Materials
7.32
-34.69
-2.52
Energy
6.75
-54.29
-4.37
Cash
5.26
0.22
0.01
Unclassified
0.04
176.56
0.08

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology3.05
Electronic Equipment, Instruments & ComponentsInformation Technology1.51
Health Care Equipment & SuppliesHealth Care1.49
Auto ComponentsConsumer Discretionary1.18
Building ProductsIndustrials0.80

Top Detractors

INDUSTRYSECTORGAIN (%)
Energy Equipment & ServicesEnergy-3.31
Metals & MiningMaterials-2.14
Oil, Gas & Consumable FuelsEnergy-1.06
Specialty RetailConsumer Discretionary-0.99
Internet Software & ServicesInformation Technology-0.83

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Smith & Wesson Holding CorporationLeisure ProductsConsumer Discretionary0.77
FabrinetElectronic Equipment, Instruments & ComponentsInformation Technology0.76
VASCO Data Security InternationalSoftwareInformation Technology0.72
Drew IndustriesAuto ComponentsConsumer Discretionary0.68
Super Micro ComputerTechnology Hardware, Storage & PeripheralsInformation Technology0.68

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Dawson GeophysicalEnergy Equipment & ServicesEnergy-0.90
Lincoln Educational ServicesDiversified Consumer ServicesConsumer Discretionary-0.79
Gulf Island FabricationEnergy Equipment & ServicesEnergy-0.74
Universal Stainless & Alloy ProductsMetals & MiningMaterials-0.66
Sprott ResourceOil, Gas & Consumable FuelsEnergy-0.66
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Health Care
10.77
65.73
4.43
Consumer Discretionary
15.51
11.84
3.62
Information Technology
16.91
14.70
3.16
Financials
9.39
33.80
2.34
Industrials
21.32
7.02
2.00
Telecommunication Services
0.77
61.65
0.17
Utilities
0.10
-31.50
0.06
Consumer Staples
1.68
-33.31
-0.69
Energy
7.59
-57.34
-5.32
Materials
10.49
-60.23
-9.82
Cash
5.43
0.34
0.02
Unclassified
0.04
160.62
0.07

Top Contributors

INDUSTRYSECTORGAIN (%)
Health Care Equipment & SuppliesHealth Care2.87
Semiconductors & Semiconductor EquipmentInformation Technology2.48
Specialty RetailConsumer Discretionary2.20
MachineryIndustrials1.64
Professional ServicesIndustrials1.61

Top Detractors

INDUSTRYSECTORGAIN (%)
Metals & MiningMaterials-9.87
Energy Equipment & ServicesEnergy-3.88
Diversified Consumer ServicesConsumer Discretionary-1.98
Oil, Gas & Consumable FuelsEnergy-1.45
Electrical EquipmentIndustrials-1.18

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Drew IndustriesAuto ComponentsConsumer Discretionary1.41
FRP HoldingsReal Estate Management & DevelopmentFinancials1.02
Quaker ChemicalChemicalsMaterials1.00
GP StrategiesProfessional ServicesIndustrials0.95
VASCO Data Security InternationalSoftwareInformation Technology0.88

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Lincoln Educational ServicesDiversified Consumer ServicesConsumer Discretionary-1.77
Global Power Equipment GroupElectrical EquipmentIndustrials-1.02
Universal Stainless & Alloy ProductsMetals & MiningMaterials-1.00
Gulf Island FabricationEnergy Equipment & ServicesEnergy-0.99
AXTSemiconductors & Semiconductor EquipmentInformation Technology-0.95

Risk

Above Average Volatility vs. Peer Group as of 06/30/16

The Fund has a above average volatility within its peer group of 474 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/16

The Fund outperformed the Russell Microcap during eight out of nine downturns of 10% or more from the index’s prior historical high since the index’s inception.

Market Downturns (%)

DownMarketImg

Russell Microcap Down Quarters

QUARTER ENDRUSSELL MICROCAP (%)MICRO-CAP (%)SPREAD (%)
03/31/16-5.4-1.1+4.3
09/30/15-13.8-15.7-1.9
09/30/14-8.2-10.0-1.8
06/30/14-1.4+1.8+3.2
06/30/12-2.0-8.6-6.6
09/30/11-22.7-22.1+0.6
06/30/11-3.5-4.3-0.8
06/30/10-8.9-5.8+3.1
12/31/09-0.5+6.5+7.0
03/31/09-15.2-6.9+8.3
12/31/08-28.1-27.5+0.6
09/30/08-0.8-12.5-11.7
06/30/08-3.5+1.0+4.5
03/31/08-12.4-7.9+4.5
12/31/07-7.5-1.9+5.6
09/30/07-4.6-0.9+3.7
09/30/06-0.7-2.2-1.5
06/30/06-6.8-3.2+3.6
03/31/05-7.4-3.8+3.6
09/30/04-5.6-1.8+3.8
06/30/04-1.8-1.80.0
03/31/03-2.5-7.2-4.7
09/30/02-22.4-23.5-1.1
06/30/02-3.5-6.2-2.7
09/30/01-20.4-17.3+3.1

Capture Ratios From 06/30/00 (Russell Microcap Inception) to 06/30/16

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 06/30/16

Over the past 10 years, the Fund produced lower volatility than the Russell Microcap Index.
Over the past 5 years, the Fund produced lower volatility than the Russell Microcap Index.
Over the past 3 years, the Fund produced lower volatility than the Russell Microcap Index.
From the Index's inception, the Fund outperformed the Russell Microcap Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 06/30/16

The Fund produced lower volatility than the Russell Microcap and 50% of small-cap objective funds, as shown by its standard deviation.
The Fund produced lower volatility than the Russell Microcap, as shown by its standard deviation.
The Fund produced lower volatility than the Russell Microcap and 50% of small-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Micro-Cap0.2019.29
Russell Microcap0.2620.78
Category Median0.3619.51
Best Quartile Breakpoint0.4218.66

Category Median and Best Quartile Breakpoint based on 389 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Micro-Cap
Russell Microcap
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/16

mstar-RYOTX

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 06/30/16

  RYOTX Russell Microcap
Average Market Cap
382.9M
335.4M
90%
-
2015 Portfolio Turnover
41%
-
Weighted Average P/E,
17.9x
-
Weighted Average P/B
1.7x
1.6x
U.S. Investments (% of Net Assets)
82.1%
-
Non-U.S. Investments (% of Net Assets)
11.8%
-

Portfolio Allocation

  • Total
    Holdings
    171


SECTORS
RYOTX (%) RUSSELL
MICROCAP (%)
Information Technology
22.7
14.8
Industrials
20.5
11.1
Consumer Discretionary
15.8
13.3
Financials
13.4
28.6
Health Care
11.2
20.3
Energy
4.6
4.0
Materials
4.2
2.8
Consumer Staples
0.9
2.1
Telecommunication Services
0.5
1.4
Utilities
-
1.6
Cash and Cash Equivalents
6.2
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
ePlus
1.1
Resources Connection
1.1
Standard Motor Products
1.0
Kadant
1.0
DTS
0.9
Stein Mart
0.9
PC Connection
0.9
PDF Solutions
0.9
Navigant Consulting
0.9
Landauer
0.9
Shoe Carnival
0.9
Citi Trends
0.9
CIRCOR International
0.8
AV Homes
0.8
Capella Education
0.8
LSI Industries
0.8
QuinStreet
0.8
Kirkland's
0.8
CryoLife
0.8
Kforce
0.8
Top 20 as % of Net Assets
17.8

SECTORS
RYOTX (%) RUSSELL
MICROCAP (%)
Information Technology
22.3
-
Industrials
21.0
-
Consumer Discretionary
15.8
-
Financials
12.9
-
Health Care
10.7
-
Energy
4.7
-
Materials
4.6
-
Consumer Staples
1.0
-
Telecommunication Services
0.5
-
Cash and Cash Equivalents
6.2
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
ePlus
1.1
Resources Connection
1.0
Standard Motor Products
1.0
Stein Mart
1.0
PC Connection
0.9
DTS
0.9
CryoLife
0.9
AV Homes
0.9
Citi Trends
0.9
Shoe Carnival
0.9
PDF Solutions
0.9
Navigant Consulting
0.9
Landauer
0.8
Rudolph Technologies
0.8
Orbotech
0.8
Kirkland's
0.8
QuinStreet
0.8
Kforce
0.8
Zealand Pharma
0.8
LSI Industries
0.8
Top 20 as % of Net Assets
17.7

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/16. 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 ($) REINVEST
PRICE ($)
12/16/15 12/17/15 12/17/15 0.0000 - 1.4411 - 1.4411 11.00
12/16/14 12/17/14 12/17/14 0.0000 - 1.4830 - 1.4830 14.10
12/04/13 12/05/13 12/05/13 0.0185 - 1.1929 - 1.2114 16.20
12/27/12 12/28/12 12/28/12 0.0050 0.0259 - - 0.0309 14.48
12/05/12 12/06/12 12/06/12 0.0000 0.0273 0.8269 - 0.8542 14.17
12/07/11 12/08/11 12/08/11 0.2016 - 0.6977 - 0.8993 14.47
12/08/10 12/09/10 12/09/10 0.2533 - - - 0.2533 17.03
12/08/09 12/09/09 12/09/09 0.1842 - - - 0.1842 13.21

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) 1.00

Annual Fund Operating Expenses (%)

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

Management fees 1.25
Distribution (12b-1) fees 0.00
Other expenses 0.24
Acquired fund fees and expenses 0.01
Total annual Fund operating expenses 1.50
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 carefuly before investing or sending money. The Fund invests primarily in 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 35% of its net assets (measured at the time of investment) in securities of companies headquartered in foreign countries, 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. 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 Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell. 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. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

Jim Stoeffel lead manager since 2015 (co-manager 2015), Jenifer Taylor (co-manager or manager 2006-2015), Chris Flynn, Jim Harvey, and Brendan Hartman since 2015 (assistant portfolio manager 2013-2015)

12/31/1991 12:00:00 AM

Share:

Subscribe:

Sign Up

Follow: