2
03/31/15
04/30/15
05/22/15
11/19/1996

At a Glance

Why invest in Opportunity?

  • Investment goal of long-term growth of capital
  • Broadly diversified portfolio, theme-based, opportunistic value approach
  • Invests primarily in small-cap stocks, up to $3 billion
  • Buzz Zaino lead manager since 2013 (manager 1998-2013), Bill Hench since 2013 (assistant portfolio manager 2004-2013)

As of 03/31/15

Portfolio Management





Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 15-Year and since inception (11/19/96) periods as of 03/31/15.
QTR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Opportunity 1.11 1.11-2.8114.6612.818.7410.3012.88 11/19/96
Russell 2000 4.32 4.328.2116.2714.578.827.198.66 N/A

Annual Operating Expenses: 1.15

APR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Opportunity -1.25 -0.15-0.7514.8110.699.5210.4712.74 11/19/96
Russell 2000 -2.55 1.659.7115.8712.739.187.458.47 N/A

Annual Operating Expenses: 1.15

MAY YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Opportunity 1.86 1.713.8318.6513.809.2610.8212.81 11/19/96
Russell 2000 2.72 4.4213.9019.7515.588.918.158.60 N/A

Annual Operating Expenses: 1.15

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 expenses. 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 98% of all 10-Year periods; 80% of all 5-Year periods; 77% of all 3-Year periods; and 66% of all 1-Year periods.

For 100% of the periods, 10-year average annual total returns were greater than 5%; For 49% of the periods, 10-year average annual total returns were greater than 10%.

Relative Returns: Monthly Rolling Average Annual Return Periods 15 Years Through 03/31/15

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
60/61
98 9.8 7.6
5-year
97/121
80 10.2 7.8
3-year
112/145
77 11.5 8.7
1-year
111/169
66 14.4 9.8

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% 49 49
> 5% and ≤ 10% 52 51
> 0% and ≤ 5% 0 0
≤ 0% 0 0

The Fund averaged a 10.9% return over all 101 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 3/9/00 index peak through 3/31/15 and in each of the two previous full market cycle periods.
Peak-Peak - 03/09/2000 - 07/13/2007
Opportunity191.8%
Russell 200054.8%

Peak-Peak - 07/13/2007 - 04/29/2011
Opportunity6.9%
Russell 20006.6%

Peak-Current - 04/29/2011 - 03/31/2015
Opportunity42.9%
Russell 200052.9%

Royce defines market cycles as peak-to-peak periods in which a peak is the market high prior to a decline of at least 15%. 

Royce defines market cycles as peak-to-peak periods in which a peak is the market high prior to a decline of at least 15%. 

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 11/19/96 and 03/31/15

Opportunity$92,527.72
Russell 2000$45,970.17

Portfolio Impactas of 03/31/15

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Consumer Discretionary
14.66
5.10
0.78
Information Technology
31.52
2.05
0.70
Health Care
3.78
10.48
0.38
Industrials
20.11
1.03
0.16
Utilities
0.07
20.57
0.02
Telecommunication Services
0.65
-0.41
0.00
Consumer Staples
1.48
-0.70
-0.01
Financials
10.95
-0.19
-0.04
Materials
7.50
-1.64
-0.17
Energy
2.04
-10.44
-0.24
Cash
7.25
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology1.27
Household DurablesConsumer Discretionary0.44
Commercial Services & SuppliesIndustrials0.38
Health Care Equipment & SuppliesHealth Care0.21
Life Sciences Tools & ServicesHealth Care0.20

Top Detractors

INDUSTRYSECTORGAIN (%)
Construction & EngineeringIndustrials-0.30
Electronic Equipment, Instruments & ComponentsInformation Technology-0.29
Metals & MiningMaterials-0.24
Energy Equipment & ServicesEnergy-0.21
Technology Hardware Storage & PeripheralsInformation Technology-0.21

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RTI International MetalsMetals & MiningMaterials0.42
Qorvo IncSemiconductors & Semiconductor EquipmentInformation Technology0.24
Microsemi CorporationSemiconductors & Semiconductor EquipmentInformation Technology0.21
II-VIElectronic Equipment, Instruments & ComponentsInformation Technology0.20
Martha Stewart Living Omnimedia Cl. AMediaConsumer Discretionary0.18

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Century AluminumMetals & MiningMaterials-0.27
West MarineSpecialty RetailConsumer Discretionary-0.17
McClatchy Company (The) Cl. AMediaConsumer Discretionary-0.17
Layne ChristensenConstruction & EngineeringIndustrials-0.16
Silicon Graphics InternationalTechnology Hardware Storage & PeripheralsInformation Technology-0.15
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Consumer Discretionary
14.66
5.10
0.78
Information Technology
31.52
2.05
0.70
Health Care
3.78
10.48
0.38
Industrials
20.11
1.03
0.16
Utilities
0.07
20.57
0.02
Telecommunication Services
0.65
-0.41
0.00
Consumer Staples
1.48
-0.70
-0.01
Financials
10.95
-0.19
-0.04
Materials
7.50
-1.64
-0.17
Energy
2.04
-10.44
-0.24
Cash
7.25
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology1.27
Household DurablesConsumer Discretionary0.44
Commercial Services & SuppliesIndustrials0.38
Health Care Equipment & SuppliesHealth Care0.21
Life Sciences Tools & ServicesHealth Care0.20

Top Detractors

INDUSTRYSECTORGAIN (%)
Construction & EngineeringIndustrials-0.30
Electronic Equipment, Instruments & ComponentsInformation Technology-0.29
Metals & MiningMaterials-0.24
Energy Equipment & ServicesEnergy-0.21
Technology Hardware Storage & PeripheralsInformation Technology-0.21

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RTI International MetalsMetals & MiningMaterials0.42
Qorvo IncSemiconductors & Semiconductor EquipmentInformation Technology0.24
Microsemi CorporationSemiconductors & Semiconductor EquipmentInformation Technology0.21
II-VIElectronic Equipment, Instruments & ComponentsInformation Technology0.20
Martha Stewart Living Omnimedia Cl. AMediaConsumer Discretionary0.18

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Century AluminumMetals & MiningMaterials-0.27
West MarineSpecialty RetailConsumer Discretionary-0.17
McClatchy Company (The) Cl. AMediaConsumer Discretionary-0.17
Layne ChristensenConstruction & EngineeringIndustrials-0.16
Silicon Graphics InternationalTechnology Hardware Storage & PeripheralsInformation Technology-0.15
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
29.35
5.83
2.14
Health Care
4.18
13.18
0.48
Financials
10.95
0.96
0.24
Industrials
20.30
-0.06
0.16
Telecommunication Services
0.60
25.98
0.15
Consumer Staples
1.18
7.03
0.11
Utilities
0.02
20.57
0.02
Consumer Discretionary
13.74
-3.41
-0.36
Materials
8.65
-9.95
-1.12
Energy
4.00
-56.45
-3.21
Cash
7.04
0.02
0.00
Unclassified
0.00
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology2.69
AirlinesIndustrials0.51
Air Freight & LogisticsIndustrials0.45
MachineryIndustrials0.44
Building ProductsIndustrials0.41

Top Detractors

INDUSTRYSECTORGAIN (%)
Energy Equipment & ServicesEnergy-1.73
Oil, Gas & Consumable FuelsEnergy-1.48
Metals & MiningMaterials-1.02
Construction & EngineeringIndustrials-0.92
MarineIndustrials-0.76

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Qorvo IncSemiconductors & Semiconductor EquipmentInformation Technology0.60
Pericom SemiconductorSemiconductors & Semiconductor EquipmentInformation Technology0.46
Avid TechnologyTechnology Hardware Storage & PeripheralsInformation Technology0.37
RTI International MetalsMetals & MiningMaterials0.36
Microsemi CorporationSemiconductors & Semiconductor EquipmentInformation Technology0.32

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
McClatchy Company (The) Cl. AMediaConsumer Discretionary-0.45
Layne ChristensenConstruction & EngineeringIndustrials-0.43
QuiksilverTextiles, Apparel & Luxury GoodsConsumer Discretionary-0.37
A. M. Castle & Co.Metals & MiningMaterials-0.34
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.33
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Industrials
19.77
72.72
14.34
Consumer Discretionary
15.66
77.31
12.95
Information Technology
25.93
49.79
12.01
Financials
12.41
60.37
8.06
Health Care
4.28
150.28
5.08
Materials
8.65
40.59
4.25
Consumer Staples
0.92
18.41
0.08
Telecommunication Services
0.46
13.07
0.05
Utilities
0.01
20.57
0.02
Energy
4.89
-34.04
0.01
Cash
7.03
0.15
0.01
Unclassified
0.00
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology7.73
MachineryIndustrials5.44
Building ProductsIndustrials4.21
BanksFinancials3.12
ChemicalsMaterials2.92

Top Detractors

INDUSTRYSECTORGAIN (%)
MarineIndustrials-0.66
Metals & MiningMaterials-0.45
Electrical EquipmentIndustrials-0.44
Oil, Gas & Consumable FuelsEnergy-0.34
Personal ProductsConsumer Staples-0.16

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology1.39
Cambrex CorporationLife Sciences Tools & ServicesHealth Care1.25
SunPower CorporationSemiconductors & Semiconductor EquipmentInformation Technology1.24
Apogee EnterprisesBuilding ProductsIndustrials1.19
UnifiTextiles, Apparel & Luxury GoodsConsumer Discretionary1.19

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.69
Walter EnergyMetals & MiningMaterials-0.65
KEMET CorporationElectronic Equipment, Instruments & ComponentsInformation Technology-0.49
Key Energy ServicesEnergy Equipment & ServicesEnergy-0.48
Layne ChristensenConstruction & EngineeringIndustrials-0.48
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Industrials
19.03
158.74
27.77
Consumer Discretionary
17.63
113.94
20.38
Information Technology
25.45
75.20
20.36
Materials
9.60
75.39
9.12
Financials
11.63
66.98
8.77
Health Care
3.73
155.81
5.00
Energy
4.72
-19.08
1.78
Telecommunication Services
0.53
102.25
0.55
Consumer Staples
1.04
38.79
0.39
Utilities
0.03
27.63
0.07
Cash
6.47
0.32
0.03
Unclassified
0.14
-56.98
0.14

Top Contributors

INDUSTRYSECTORGAIN (%)
MachineryIndustrials11.32
Semiconductors & Semiconductor EquipmentInformation Technology9.94
Specialty RetailConsumer Discretionary5.75
ChemicalsMaterials5.62
Building ProductsIndustrials5.53

Top Detractors

INDUSTRYSECTORGAIN (%)
MarineIndustrials-1.28
Electrical EquipmentIndustrials-0.56
Diversified Financial ServicesFinancials-0.51
Professional ServicesIndustrials-0.37
Capital MarketsFinancials-0.36

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Cost PlusSpecialty RetailConsumer Discretionary2.31
United RentalsTrading Companies & DistributorsIndustrials2.24
Lithia Motors Cl. ASpecialty RetailConsumer Discretionary1.94
Cambrex CorporationLife Sciences Tools & ServicesHealth Care1.86
Dillard's Cl. AMultiline RetailConsumer Discretionary1.78

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Overseas Shipholding GroupOil, Gas & Consumable FuelsEnergy-1.21
Furniture Brands InternationalHousehold DurablesConsumer Discretionary-1.14
Network Equipment TechnologiesCommunications EquipmentInformation Technology-0.74
Aviat NetworksCommunications EquipmentInformation Technology-0.72
Talbots (The)Specialty RetailConsumer Discretionary-0.70

Risk

Down Market Performance Comparisonas of 03/31/15

The Fund outperformed the Russell 2000 during four out of 10 downturns of 7.5% or more from the index’s prior historical high over the last 15 years.

Market Downturns (%)

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)OPPORTUNITY (%)SPREAD (%)
09/30/14-7.4-9.0-1.6
06/30/12-3.5-5.3-1.8
09/30/11-21.9-28.0-6.1
06/30/11-1.6-3.9-2.3
06/30/10-9.9-12.0-2.1
03/31/09-15.0-12.9+2.1
12/31/08-26.1-36.3-10.2
09/30/08-1.1-4.0-2.9
03/31/08-9.9-9.3+0.6
12/31/07-4.6-7.7-3.1
09/30/07-3.1-5.9-2.8
06/30/06-5.0-5.9-0.9
03/31/05-5.3-4.4+0.9
09/30/04-2.9-4.5-1.6
03/31/03-4.5-6.1-1.6
09/30/02-21.4-27.8-6.4
06/30/02-8.4-5.9+2.5
09/30/01-20.8-19.0+1.8
03/31/01-6.5+4.2+10.7
12/31/00-6.9-5.8+1.1
06/30/00-3.8-1.7+2.1

Capture Ratios Fund's First Full Quarter (12/31/96) to 03/31/15

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 03/31/15

Morningstar Statistical Measures as of 03/31/15

Sharpe RatioStandard Deviation
Opportunity0.4124.50
Russell 20000.4619.76
Category Median0.4519.37
Best Quartile Breakpoint0.5118.53

Category Median and Best Quartile Breakpoint based on 302 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Opportunity
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™ as of 12/31/14

mstar-RYPNX

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 03/31/15

  • Avg.
    Market Cap
    $762.4M

Diagnosticsas of 03/31/15

Weighted Avg. P/B
1.8x
2014 Portfolio Turnover
36%
90%

Portfolio Allocation

  • Broadly
    Diversified
     
  • Total
    Holdings
    285
  • Holdings ≥ 75%
    of Total Investments
    145


SECTORS
RYPNX (%) RUSSELL
2000 (%)
Information Technology
31.0
17.9
Industrials
20.5
13.6
Consumer Discretionary
15.4
14.0
Financials
10.9
23.7
Materials
7.2
4.4
Health Care
3.5
15.6
Energy
1.8
3.4
Consumer Staples
1.7
3.2
Telecommunication Services
0.7
0.7
Utilities
0.1
3.5
Cash and Cash Equivalents
7.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Microsemi Corporation
1.0
Mueller Industries
0.9
Commercial Metals
0.9
Sanmina Corporation
0.8
Advanced Energy Industries
0.8
Mueller Water Products Cl. A
0.8
Astec Industries
0.8
Interface
0.8
Kaiser Aluminum
0.7
General Cable
0.7
NCI Building Systems
0.7
XPO Logistics
0.7
Avid Technology
0.7
NN
0.7
Federal Signal
0.7
Assured Guaranty
0.7
Quanex Building Products
0.7
Unifi
0.7
Iridium Communications
0.7
Brooks Automation
0.7
Top 20 as % of Net Assets
15.2

SECTORS
RYPNX (%) RUSSELL
2000 (%)
Information Technology
29.9
-
Industrials
20.6
-
Consumer Discretionary
15.2
-
Financials
11.1
-
Materials
7.9
-
Health Care
3.5
-
Energy
2.1
-
Consumer Staples
1.6
-
Telecommunication Services
0.7
-
Utilities
0.2
-
Cash and Cash Equivalents
7.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Microsemi Corporation
1.0
Commercial Metals
0.9
Mueller Industries
0.8
Advanced Energy Industries
0.8
Encore Wire
0.8
Astec Industries
0.8
Interface
0.8
Kaiser Aluminum
0.8
NN
0.7
Avid Technology
0.7
Mueller Water Products Cl. A
0.7
Kraton Performance Polymers
0.7
General Cable
0.7
XPO Logistics
0.7
Invacare Corporation
0.7
Iridium Communications
0.7
Assured Guaranty
0.7
Albany Molecular Research
0.7
Federal Signal
0.7
Quanex Building Products
0.7
Top 20 as % of Net Assets
15.1

Portfolio Holdings

View the complete list of holdings for this fund as of 03/31/15. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap

Greatest Portfolio Overlap

Investment Themes as a Percentage of Assets

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 ($) REINVEST
PRICE ($)
12/16/14 12/17/14 12/17/14 0.0000 0.1123 1.8262 - 1.9385 13.01
12/04/13 12/05/13 12/05/13 0.0000 0.0218 1.5136 - 1.5354 14.84
12/05/12 12/06/12 12/06/12 0.0000 0.1317 0.5382 - 0.6699 11.42
12/07/11 12/08/11 12/08/11 0.0000 - 0.1887 - 0.1887 9.96
12/08/09 12/09/09 12/09/09 0.0010 - - - 0.0010 8.56

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 0.99
Distribution (12b-1) fees 0.00
Other expenses 0.15
Acquired fund fees and expenses 0.01
Total annual Fund operating expenses 1.15
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 small-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 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.

Buzz Zaino lead manager since 2013 (manager 1998-2013), Bill Hench since 2013 (assistant portfolio manager 2004-2013)

11/19/1996 12:00:00 AM

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