639
12/31/2014
2/28/2015
3/27/2015
8/31/2010

At a Glance

Why invest in
Opportunity Select?

  • Investment goal of long-term growth of capital
  • May invest in both long and short positions
Long portfolio: Focused portfolio, theme-based, opportunistic value approach
  • Invests primarily in small-cap stocks, up to $2.5 billion
  • Managed by Bill Hench since 2010, assistant Buzz Zaino since 2010

As of 12/31/2014

Portfolio Management




Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 3-Year period as of 12/31/2014.
QTR YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select 3.02 -4.97-4.9722.9217.33 8/31/2010
Russell 2000 9.73 4.894.8919.2118.96 N/A

Annual Operating Expenses: Gross 1.78 Net 1.29

FEB YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select 7.75 3.57-6.6318.5417.57 8/31/2010
Russell 2000 5.94 2.535.6316.5818.88 N/A

Annual Operating Expenses: Gross 1.78 Net 1.29

MAR YTD 1YR 3YR SINCE INCEPT. DATE
Opportunity Select 0.64 4.24-3.8417.3017.43 8/31/2010
Russell 2000 N/A N/AN/AN/AN/A N/A

Annual Operating Expenses: Gross 1.78 Net 1.29

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 on or before 1/30/15 within 180 days of purchase, and after 1/30/15 within 30 days of purchase, may be subject to a 1% redemption fee. All redemption fees are payable to the Fund and are not reflected in the performance shown above; if such fees were reflected, 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, dividends on securities sold short, 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 Funds 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, other than dividends on securities sold short, and interest expense on borrowing, at or below 1.24% through April 30, 2015. 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 100% of all 3-Year periods; and 63% of all 1-Year periods.

Relative Returns: Monthly Rolling Average Annual Return Periods Since Inception Through 12/31/2014

periods beating
the index(%)
fund
avg(%)
index
avg(%)
3-year
17/17
100 20.0 16.4
1-year
26/41
63 18.2 15.0

Cumulative Performance since Inception (8/31/10) and Market Cycle Peak

Inception-Current - 08/31/2010 - 12/31/2014
Opportunity Select99.9%
Russell 2000112.3%

Peak-Current - 04/29/2011 - 12/31/2014
Opportunity Select42.6%
Russell 200046.5%

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 8/31/2010 and 12/31/2014

Opportunity Select$19,989.90
Russell 2000$21,225.46

Portfolio Impactas of 12/31/2014

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
30.31
9.55
2.56
Industrials
14.32
9.29
1.27
Consumer Discretionary
14.92
6.61
1.08
Health Care
7.54
13.66
0.99
Financials
8.12
5.16
0.43
Telecommunication Services
0.71
-2.79
0.01
Materials
11.25
-2.38
-0.53
Energy
3.16
-41.43
-2.11
Cash
9.67
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology2.12
Household DurablesConsumer Discretionary0.80
Specialty RetailConsumer Discretionary0.74
Road & RailIndustrials0.63
Health Care Equipment & SuppliesHealth Care0.62

Top Detractors

INDUSTRYSECTORGAIN (%)
Oil, Gas & Consumable FuelsEnergy-1.62
Metals & MiningMaterials-0.91
Communications EquipmentInformation Technology-0.67
Multiline RetailConsumer Discretionary-0.50
Energy Equipment & ServicesEnergy-0.49

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RF Micro Devices, IncSemiconductors & Semiconductor EquipmentInformation Technology0.87
CarboniteInternet Software & ServicesInformation Technology0.62
ZumiezSpecialty RetailConsumer Discretionary0.60
Swift Transportation Cl. ARoad & RailIndustrials0.48
OraSure TechnologiesHealth Care Equipment & SuppliesHealth Care0.46

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Amber RoadInternet Software & ServicesInformation Technology-0.84
Extreme NetworksCommunications EquipmentInformation Technology-0.62
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.58
Pengrowth EnergyOil, Gas & Consumable FuelsEnergy-0.56
J.C. Penney CompanyMultiline RetailConsumer Discretionary-0.50
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
29.21
5.86
0.91
Health Care
3.99
12.80
0.81
Industrials
18.03
1.41
0.12
Consumer Staples
0.25
4.83
0.05
Telecommunication Services
0.18
-2.79
0.01
Financials
8.84
-2.76
-0.11
Consumer Discretionary
13.47
-5.15
-0.43
Materials
10.14
-16.18
-2.26
Energy
7.37
-48.81
-2.27
Cash
8.52
0.03
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology2.48
Air Freight & LogisticsIndustrials0.76
Specialty RetailConsumer Discretionary0.71
Road & RailIndustrials0.65
Health Care Equipment & SuppliesHealth Care0.58

Top Detractors

INDUSTRYSECTORGAIN (%)
Communications EquipmentInformation Technology-1.66
Metals & MiningMaterials-1.43
Oil, Gas & Consumable FuelsEnergy-1.38
Electrical EquipmentIndustrials-1.34
Energy Equipment & ServicesEnergy-0.89

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RF Micro Devices, IncSemiconductors & Semiconductor EquipmentInformation Technology1.92
ZumiezSpecialty RetailConsumer Discretionary0.71
CarboniteInternet Software & ServicesInformation Technology0.58
OraSure TechnologiesHealth Care Equipment & SuppliesHealth Care0.57
Tower InternationalAuto ComponentsConsumer Discretionary0.54

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Extreme NetworksCommunications EquipmentInformation Technology-1.21
Hercules OffshoreEnergy Equipment & ServicesEnergy-1.02
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.90
QuiksilverTextiles, Apparel & Luxury GoodsConsumer Discretionary-0.90
Pengrowth EnergyOil, Gas & Consumable FuelsEnergy-0.82
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
29.21
5.86
0.91
Health Care
3.99
12.80
0.81
Industrials
18.03
1.41
0.12
Consumer Staples
0.25
4.83
0.05
Telecommunication Services
0.18
-2.79
0.01
Financials
8.84
-2.76
-0.11
Consumer Discretionary
13.47
-5.15
-0.43
Materials
10.14
-16.18
-2.26
Energy
7.37
-48.81
-2.27
Cash
8.52
0.03
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology2.48
Air Freight & LogisticsIndustrials0.76
Specialty RetailConsumer Discretionary0.71
Road & RailIndustrials0.65
Health Care Equipment & SuppliesHealth Care0.58

Top Detractors

INDUSTRYSECTORGAIN (%)
Communications EquipmentInformation Technology-1.66
Metals & MiningMaterials-1.43
Oil, Gas & Consumable FuelsEnergy-1.38
Electrical EquipmentIndustrials-1.34
Energy Equipment & ServicesEnergy-0.89

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RF Micro Devices, IncSemiconductors & Semiconductor EquipmentInformation Technology1.92
ZumiezSpecialty RetailConsumer Discretionary0.71
CarboniteInternet Software & ServicesInformation Technology0.58
OraSure TechnologiesHealth Care Equipment & SuppliesHealth Care0.57
Tower InternationalAuto ComponentsConsumer Discretionary0.54

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Extreme NetworksCommunications EquipmentInformation Technology-1.21
Hercules OffshoreEnergy Equipment & ServicesEnergy-1.02
Swift EnergyOil, Gas & Consumable FuelsEnergy-0.90
QuiksilverTextiles, Apparel & Luxury GoodsConsumer Discretionary-0.90
Pengrowth EnergyOil, Gas & Consumable FuelsEnergy-0.82
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
28.01
114.44
25.83
Consumer Discretionary
13.78
158.45
18.80
Industrials
16.84
115.88
16.53
Financials
11.36
150.65
14.87
Energy
9.73
-11.24
6.19
Materials
7.52
29.12
3.24
Health Care
1.72
104.70
1.71
Telecommunication Services
0.06
-2.79
0.01
Consumer Staples
0.71
-27.24
-1.38
Cash
10.28
0.16
0.03

Top Contributors

INDUSTRYSECTORGAIN (%)
Semiconductors & Semiconductor EquipmentInformation Technology18.87
Thrifts & Mortgage FinanceFinancials7.75
Household DurablesConsumer Discretionary7.37
SoftwareInformation Technology6.94
MachineryIndustrials5.73

Top Detractors

INDUSTRYSECTORGAIN (%)
Food & Staples RetailingConsumer Staples-1.79
Metals & MiningMaterials-1.64
MarineIndustrials-1.36
Electrical EquipmentIndustrials-1.23
Internet Software & ServicesInformation Technology-1.14

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Ellie MaeSoftwareInformation Technology5.39
Standard PacificHousehold DurablesConsumer Discretionary4.81
Radian GroupThrifts & Mortgage FinanceFinancials4.17
SunEdisonSemiconductors & Semiconductor EquipmentInformation Technology3.51
Mueller Water Products Cl. AMachineryIndustrials3.02

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
SUPERVALUFood & Staples RetailingConsumer Staples-1.79
Walter EnergyMetals & MiningMaterials-1.34
MBIAInsuranceFinancials-1.04
Pengrowth EnergyOil, Gas & Consumable FuelsEnergy-0.82
Genco Shipping & TradingMarineIndustrials-0.78
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)

Top Contributors

INDUSTRYSECTORGAIN (%)

Top Detractors

INDUSTRYSECTORGAIN (%)

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)

Risk

Down Market Performance Comparisonas of 12/31/2014

The Fund outperformed the Russell 2000 during one out of four downturns of 7.5% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)OPPORTUNITY SELECT (%)SPREAD (%)
9/30/2014-7.4-10.7-3.3
6/30/2012-3.5-1.1+2.4
9/30/2011-21.9-26.2-4.3
6/30/2011-1.6-6.9-5.3

Long Term Risk Measurementas of

Over the past 3 years, the Fund outperformed the Russell 2000.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 12/31/2014

Sharpe RatioStandard Deviation

Sharpe Ratio Standard Deviation
Opportunity Select
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™ as of 12/31/2014

mstar-ROSFX

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 12/31/2014

  • Avg.
    Market Cap
    $757.4M

Diagnosticsas of 12/31/2014

Weighted Avg. P/B
1.7x
2014 Portfolio Turnover
131%
102%

Portfolio Exposureas of 12/31/2014

EXPOSURE(%) NUMBER OF POSITIONS
Long 99.3 88
Short -4.9 14
Net 94.3 102
Gross 104.2

Portfolio Allocation as of 12/31/2014

  • Focused 
  • Total
    Holdings
    102
  • Holdings ≥ 75%
    of Total Investments
    49

SECTORSLONG(%)SHORT(%)NET(%)Russell 2000 (%)
Information Technology
36.1
-0.2
36.0
17.9
Consumer Discretionary
18.9
-2.6
16.4
13.7
Industrials
14.5
-1.2
13.3
13.8
Materials
9.8
-
9.8
4.5
Health Care
9.3
-
9.3
14.8
Financials
7.4
-0.7
6.7
24.2
Telecommunication Services
1.7
-
1.7
0.8
Energy
1.5
-
1.5
3.5
Consumer Staples
-
-0.3
-0.3
3.3
Utilities
-
-
-
3.6
Cash and Cash Equivalents
5.7
-
5.7
-
LONG POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
MBIA
2.3
Exar Corporation
2.1
Logitech International
2.1
Zumiez
2.0
Owens & Minor
2.0
Mentor Graphics
2.0
RF Micro Devices
2.0
RTI International Metals
2.0
EarthLink Holdings
2.0
Carbonite
1.9
Top 10 as % of Net Assets
20.4
SHORT POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Lumber Liquidators Holdings
-0.9
Michael Kors Holdings
-0.6
Dycom Industries
-0.5
Life Time Fitness
-0.4
Janus Capital Group
-0.4
Men's Wearhouse (The)
-0.4
Trex Company
-0.3
Fresh Market (The)
-0.3
CIRCOR International
-0.3
Stifel Financial
-0.3
Top 10 as % of Net Assets
-4.4

Portfolio Holdings

View the complete list of holdings for this fund as of 12/31/2014. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap

Greatest Portfolio Overlap

Investment Themes as a Percentage of Assets

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 ($) REINVEST
PRICE ($)
12/16/2014 12/17/2014 12/17/2014 0.0000 0.1374 0.3696 - 0.5070 16.13
12/11/2013 12/12/2013 12/12/2013 0.0000 0.2028 0.3520 - 0.5548 16.72
12/12/2012 12/13/2012 12/13/2012 0.1271 0.8221 0.1382 - 1.0874 12.11
12/14/2011 12/15/2011 12/15/2011 0.0171 0.3955 - - 0.4126 9.84

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 1.00
Distribution (12b-1) fees 0.00
Dividends on securities sold short 0.05
Other expenses 0.73
Total annual Fund operating expenses 1.78
Fee waivers and/or expense reimbursements (0.49)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.29

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 companies, which may involve considerably more risk than investing in larger-cap stocks. The Fund 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 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.) The Fund may sell securities short which involves selling a security it does not own in anticipation that the security's price will decline. Short sales present unlimited risk on an individual stock basis since the Fund may be required to buy the security sold short at a time when the security has appreciated in value. 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-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.

8/31/2010 12:00:00 AM
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