75

At a Glance

Why invest in Premier?

  • Small-cap core fund that invests primarily in what Royce believes are “premier” small-cap companies (generally market caps from $1 billion-$3 billion at the time of investment) with discernible competitive advantages, high returns on capital, and a sustainable, moat-like franchise
  • Focuses on leading quality companies, those with low debt, the ability to generate excess cash flow, and attractive prospects that are selling at prices Royce believes do not fully reflect these attributes
  • Outperformed its benchmark, the Russell 2000 Index, in 98% of all monthly rolling 10-year periods for the 20 years ended 6/30/17

As of 06/30/17

  • Small-Cap
    Core Approach
    $3.58B
    Avg. Market Cap
  • Average
    Volatility
    97%
    Active Share
  • Lead Manager
    Tenure
    25+
    Years on Fund

Portfolio Management

"Essentially, we are interested in three things—a strong balance sheet, a record of success as a business, and the potential for a profitable future."
Chuck Royce

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the Year To Date, 1-Year, 15-Year, 20-Year and since inception (12/31/91) periods as of 06/30/17.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Premier 1.74 8.4625.043.3210.286.9210.5210.2311.47 12/31/91
Russell 2000 2.46 4.9924.607.3613.706.929.197.989.70 N/A

Annual Operating Expenses: Gross 1.50 Net 1.49

JUN YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Premier 0.74 8.4625.043.3210.286.9210.5210.2311.47 12/31/91
Russell 2000 3.46 4.9924.607.3613.706.929.197.989.70 N/A

Annual Operating Expenses: Gross 1.50 Net 1.49

JUL YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Premier 2.13 10.7722.765.0311.357.3911.6510.2211.52 12/31/91
Russell 2000 1.94 7.0320.189.5314.757.6810.737.929.75 N/A

Annual Operating Expenses: Gross 1.50 Net 1.49

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. Gross operating expenses reflect the Fund's gross total annual operating expenses for the Service Class and include management fees, 12b-1 distribution and service 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 Service 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 1.49% through April 30, 2018.

All performance and risk information presented in this material prior to the commencement date of Service Class shares on 9/3/02 reflects Investment Class results. Service Class shares bear an annual distribution expense that is not borne by Investment Class shares. If Service Class's annual distribution expense had been reflected, total returns prior to 9/3/02 would have been lower.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 in 98% of all 10-Year periods; 71% of all 5-Year periods; and 62% of all 1-Year periods.

For 99% of the periods, 10-year average annual total returns were greater than 5%; For 75% of the periods, 10-year average annual total returns were greater than 10%.

Relative Returns: Monthly Rolling Average Annual Return Periods 20 Years Through 06/30/17

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
118/121
98 10.3 6.7
5-year
129/181
71 10.7 7.7
1-year
142/229
62 11.2 9.2

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% 140 75
> 5% and ≤ 10% 46 25
> 0% and ≤ 5% 1 1
≤ 0% 0 0

The Fund averaged a 11.4% return over all 187 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 6/23/15 index peak through current (6/30/17) and in one of the two previous full market cycle periods.
Peak-Peak - 07/13/07 - 04/29/11
Premier28.8%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Premier28.2%
Russell 200058.5%

Peak-Current - 06/23/15 - 06/30/17
Premier14.5%
Russell 200012.5%

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 12/31/91 and 06/30/17

Premier$159,246.60
Russell 2000$105,900.67

Portfolio Impactas of 06/30/17

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
19.71
7.82
1.46
Health Care
3.81
9.15
0.34
Consumer Staples
2.23
10.78
0.23
Consumer Discretionary
9.54
2.27
0.22
Industrials
33.14
0.27
0.10
Real Estate
0.90
9.84
0.08
Financials
11.72
0.41
0.05
Materials
6.84
-0.71
-0.05
Energy
3.17
-6.75
-0.21
Cash
8.94
0.22
0.02

Top Contributors

INDUSTRYSECTORGAIN (%)
Electronic Equipment, Instruments & ComponentsInformation Technology0.99
MachineryIndustrials0.48
IT ServicesInformation Technology0.40
Life Sciences Tools & ServicesHealth Care0.24
Food ProductsConsumer Staples0.23

Top Detractors

INDUSTRYSECTORGAIN (%)
Trading Companies & DistributorsIndustrials-0.35
Energy Equipment & ServicesEnergy-0.21
Metals & MiningMaterials-0.18
Specialty RetailConsumer Discretionary-0.14
MarineIndustrials-0.13

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
National InstrumentsElectronic Equipment, Instruments & ComponentsInformation Technology0.63
IPG PhotonicsElectronic Equipment, Instruments & ComponentsInformation Technology0.32
Bio-TechneLife Sciences Tools & ServicesHealth Care0.24
Jack Henry & AssociatesIT ServicesInformation Technology0.22
Sun HydraulicsMachineryIndustrials0.22

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
SEACOR HoldingsEnergy Equipment & ServicesEnergy-0.30
MSC Industrial Direct Cl. ATrading Companies & DistributorsIndustrials-0.28
Ritchie Bros. AuctioneersCommercial Services & SuppliesIndustrials-0.18
Reliance Steel & AluminumMetals & MiningMaterials-0.18
Kirby CorporationMarineIndustrials-0.15
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
20.18
23.15
4.37
Industrials
33.50
5.24
1.89
Financials
12.09
7.40
0.97
Health Care
3.72
27.12
0.93
Consumer Discretionary
9.86
7.84
0.79
Consumer Staples
2.11
12.96
0.27
Real Estate
1.07
19.14
0.20
Materials
7.12
1.85
0.18
Energy
3.31
-8.48
-0.28
Cash
7.03
0.37
0.03

Top Contributors

INDUSTRYSECTORGAIN (%)
Electronic Equipment, Instruments & ComponentsInformation Technology2.48
MachineryIndustrials0.96
Capital MarketsFinancials0.84
Semiconductors & Semiconductor EquipmentInformation Technology0.75
Health Care Equipment & SuppliesHealth Care0.70

Top Detractors

INDUSTRYSECTORGAIN (%)
Energy Equipment & ServicesEnergy-0.28
Specialty RetailConsumer Discretionary-0.20
Metals & MiningMaterials-0.14
InsuranceFinancials-0.05
MarineIndustrials-0.03

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Cognex CorporationElectronic Equipment, Instruments & ComponentsInformation Technology1.06
National InstrumentsElectronic Equipment, Instruments & ComponentsInformation Technology0.80
IDEXX LaboratoriesHealth Care Equipment & SuppliesHealth Care0.70
Lincoln Electric HoldingsMachineryIndustrials0.68
IPG PhotonicsElectronic Equipment, Instruments & ComponentsInformation Technology0.66

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
SEACOR HoldingsEnergy Equipment & ServicesEnergy-0.35
Ritchie Bros. AuctioneersCommercial Services & SuppliesIndustrials-0.27
Monro Muffler BrakeSpecialty RetailConsumer Discretionary-0.16
CIRCOR InternationalMachineryIndustrials-0.14
Reliance Steel & AluminumMetals & MiningMaterials-0.14
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
21.15
55.01
10.20
Industrials
33.64
22.74
8.26
Consumer Discretionary
10.28
30.32
3.13
Financials
12.69
17.94
2.27
Materials
7.16
15.32
1.26
Health Care
3.97
27.89
0.92
Consumer Staples
2.01
21.42
0.41
Real Estate
1.39
27.08
0.32
Energy
3.12
6.22
0.31
Cash
4.58
0.55
0.03

Top Contributors

INDUSTRYSECTORGAIN (%)
Electronic Equipment, Instruments & ComponentsInformation Technology5.69
MachineryIndustrials3.73
Semiconductors & Semiconductor EquipmentInformation Technology2.56
Capital MarketsFinancials1.92
Trading Companies & DistributorsIndustrials1.46

Top Detractors

INDUSTRYSECTORGAIN (%)
BiotechnologyHealth Care-0.39
Paper & Forest ProductsMaterials-0.18
Specialty RetailConsumer Discretionary-0.07
Technology Hardware, Storage & PeripheralsInformation Technology0.00
Metals & MiningMaterials0.01

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Cognex CorporationElectronic Equipment, Instruments & ComponentsInformation Technology2.50
MKS InstrumentsSemiconductors & Semiconductor EquipmentInformation Technology1.75
Lincoln Electric HoldingsMachineryIndustrials1.65
IDEXX LaboratoriesHealth Care Equipment & SuppliesHealth Care1.26
National InstrumentsElectronic Equipment, Instruments & ComponentsInformation Technology1.19

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Myriad GeneticsBiotechnologyHealth Care-0.39
ClarksonMarineIndustrials-0.28
Ritchie Bros. AuctioneersCommercial Services & SuppliesIndustrials-0.18
Stella-JonesPaper & Forest ProductsMaterials-0.18
Monro Muffler BrakeSpecialty RetailConsumer Discretionary-0.17
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
19.76
52.63
10.41
Industrials
30.55
14.83
6.92
Consumer Discretionary
10.98
39.81
4.18
Financials
11.66
20.46
2.44
Health Care
5.31
44.84
1.41
Consumer Staples
2.96
45.91
1.30
Real Estate
2.74
-6.37
-0.60
Materials
7.43
-10.45
-1.80
Energy
5.04
-61.92
-8.96
Cash
3.57
0.73
0.04

Top Contributors

INDUSTRYSECTORGAIN (%)
Electronic Equipment, Instruments & ComponentsInformation Technology3.56
Semiconductors & Semiconductor EquipmentInformation Technology3.02
Commercial Services & SuppliesIndustrials2.94
SoftwareInformation Technology2.90
IT ServicesInformation Technology2.03

Top Detractors

INDUSTRYSECTORGAIN (%)
Energy Equipment & ServicesEnergy-8.96
Metals & MiningMaterials-1.43
BiotechnologyHealth Care-1.16
Professional ServicesIndustrials-0.84
Specialty RetailConsumer Discretionary-0.83

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Cognex CorporationElectronic Equipment, Instruments & ComponentsInformation Technology3.18
MKS InstrumentsSemiconductors & Semiconductor EquipmentInformation Technology2.71
CopartCommercial Services & SuppliesIndustrials1.99
IDEXX LaboratoriesHealth Care Equipment & SuppliesHealth Care1.92
Fair IsaacSoftwareInformation Technology1.79

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Unit CorporationEnergy Equipment & ServicesEnergy-3.12
Trican Well ServiceEnergy Equipment & ServicesEnergy-2.32
KennametalMachineryIndustrials-1.31
Pason SystemsEnergy Equipment & ServicesEnergy-1.21
Myriad GeneticsBiotechnologyHealth Care-1.16
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
19.29
144.93
22.85
Industrials
28.29
68.85
21.00
Consumer Discretionary
10.50
109.74
10.18
Consumer Staples
3.88
232.54
8.40
Financials
10.77
68.23
6.74
Health Care
5.59
108.62
4.67
Materials
9.15
24.37
3.64
Real Estate
2.74
64.43
1.85
Energy
6.12
-41.08
-4.11
Cash
3.68
0.85
0.05
Unclassified
0.00
0.00
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Electronic Equipment, Instruments & ComponentsInformation Technology11.12
MachineryIndustrials8.39
ChemicalsMaterials5.02
Semiconductors & Semiconductor EquipmentInformation Technology4.84
AutomobilesConsumer Discretionary4.67

Top Detractors

INDUSTRYSECTORGAIN (%)
Energy Equipment & ServicesEnergy-4.11
Metals & MiningMaterials-1.68
Communications EquipmentInformation Technology-0.79
Diversified Consumer ServicesConsumer Discretionary-0.74
Electrical EquipmentIndustrials-0.55

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Cognex CorporationElectronic Equipment, Instruments & ComponentsInformation Technology5.51
Thor IndustriesAutomobilesConsumer Discretionary4.67
Westlake ChemicalChemicalsMaterials4.46
Lincoln Electric HoldingsMachineryIndustrials4.06
Nu Skin Enterprises Cl. APersonal ProductsConsumer Staples3.93

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Trican Well ServiceEnergy Equipment & ServicesEnergy-1.40
Unit CorporationEnergy Equipment & ServicesEnergy-1.31
Strayer EducationDiversified Consumer ServicesConsumer Discretionary-1.29
Knight Capital Group Cl. ACapital MarketsFinancials-1.16
Pan American SilverMetals & MiningMaterials-0.93

Risk

Average Volatility vs. Peer Group as of 06/30/17

The Fund has a average volatility within its peer group of 527 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/17

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

Market Downturns (%)

DownMarketImg
Outperformed in 13 out of 18 down quarters.

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)PREMIER (%)SPREAD (%)
03/31/16-1.5+4.4+5.9
09/30/15-11.9-12.5-0.6
09/30/14-7.4-8.6-1.2
06/30/12-3.5-8.2-4.7
09/30/11-21.9-18.8+3.1
06/30/11-1.6-1.1+0.5
06/30/10-9.9-9.0+0.9
03/31/09-15.0-10.8+4.2
12/31/08-26.1-21.9+4.2
09/30/08-1.1-11.8-10.7
03/31/08-9.9-2.7+7.2
12/31/07-4.6-2.1+2.5
09/30/07-3.1+0.5+3.6
06/30/06-5.0-5.6-0.6
03/31/05-5.3-2.7+2.6
09/30/04-2.9+0.3+3.2
03/31/03-4.5-4.0+0.5
09/30/02-21.4-12.5+8.9

Capture Ratios Fund's First Full Quarter (12/31/91) to 06/30/17

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 03/31/15

Over the past 10 years, the Fund outperformed the Russell 2000 Index with lower volatility.
Over the past 5 years, the Fund produced lower volatility than the Russell 2000 Index.
Over the past 3 years, the Fund produced lower volatility than the Russell 2000 Index.
From the Fund's inception, the Fund outperformed the Russell 2000 Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 06/30/17

The Fund produced lower volatility than the Russell 2000 and 50% of small-cap objective funds, as shown by its standard deviation.
The Fund produced lower volatility than the Russell 2000 and 50% of small-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2000 and performed within the top 50% of 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 2000 and 75% of small-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Premier0.4318.46
Russell 20000.4120.13
Category Median0.4119.81
Best Quartile Breakpoint0.4618.89

Category Median and Best Quartile Breakpoint based on 429 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Premier
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/17

mstar-RPFFX

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 06/30/17

  RPFFX Russell 2000
Average Market Cap
3.58B
1.63B
97%
-
2016 Portfolio Turnover
15%
-
Weighted Average P/E,
23.7x
21.7x
Weighted Average P/B
2.8x
2.2x
U.S. Investments (% of Net Assets)
81.6%
-
Non-U.S. Investments (% of Net Assets)
10.6%
-

Portfolio Allocation

  • Total
    Holdings
    55


SECTORS
RPFFX (%) RUSSELL
2000 (%)
Industrials
33.9
14.6
Information Technology
19.6
17.0
Financials
12.1
18.2
Consumer Discretionary
9.3
12.5
Materials
7.0
4.4
Health Care
4.0
15.0
Energy
3.3
3.6
Consumer Staples
2.2
2.7
Real Estate
0.9
7.5
Utilities
-
3.7
Telecommunication Services
-
0.9
Cash and Cash Equivalents
7.8
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Lincoln Electric Holdings
3.6
Cognex Corporation
3.6
Copart
3.3
National Instruments
3.2
MKS Instruments
3.0
Woodward
2.8
Landstar System
2.8
Kirby Corporation
2.7
Valmont Industries
2.6
Alleghany Corporation
2.6
Dorman Products
2.3
IDEXX Laboratories
2.2
Ashmore Group
2.2
Fair Isaac
2.1
Jack Henry & Associates
2.1
Air Lease Cl. A
2.0
Ares Management L.P.
1.9
IPG Photonics
1.9
Lindsay Corporation
1.9
Reliance Steel & Aluminum
1.9
Top 20 as % of Net Assets
50.7

SECTORS
RPFFX (%) RUSSELL
2000 (%)
Industrials
33.9
14.6
Information Technology
19.6
17.0
Financials
12.1
18.2
Consumer Discretionary
9.3
12.5
Materials
7.0
4.4
Health Care
4.0
15.0
Energy
3.3
3.6
Consumer Staples
2.2
2.7
Real Estate
0.9
7.5
Utilities
-
3.7
Telecommunication Services
-
0.9
Cash and Cash Equivalents
7.8
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Lincoln Electric Holdings
3.6
Cognex Corporation
3.6
Copart
3.3
National Instruments
3.2
MKS Instruments
3.0
Woodward
2.8
Landstar System
2.8
Kirby Corporation
2.7
Valmont Industries
2.6
Alleghany Corporation
2.6
Dorman Products
2.3
IDEXX Laboratories
2.2
Ashmore Group
2.2
Fair Isaac
2.1
Jack Henry & Associates
2.1
Air Lease Cl. A
2.0
Ares Management L.P.
1.9
IPG Photonics
1.9
Lindsay Corporation
1.9
Reliance Steel & Aluminum
1.9
Top 20 as % of Net Assets
50.7

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/17. 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 ($) REINVEST
PRICE ($)
12/14/16 12/15/16 12/15/16 0.0000 - 2.0388 - 2.0388 15.32
12/16/15 12/17/15 12/17/15 0.0349 0.0024 3.3295 - 3.3668 13.88
12/16/14 12/17/14 12/17/14 0.0000 - 2.0727 - 2.0727 18.92
12/04/13 12/05/13 12/05/13 0.0000 - 2.2651 - 2.2651 20.79
12/05/12 12/06/12 12/06/12 0.1367 0.0300 1.1772 - 1.3439 18.52
12/07/11 12/08/11 12/08/11 0.0236 - 1.5908 - 1.6144 18.10
12/08/10 12/09/10 12/09/10 0.0000 - 0.2683 - 0.2683 19.50

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 0.25
Other expenses 0.26
Total annual Fund operating expenses 1.50
Fee waivers and/or expense reimbursements (0.01)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.49
Royce & Associates has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Service 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 1.49% 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 carefuly 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. 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.) The Fund may invest up to 25% 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. 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.

Chuck Royce lead manager since 2016 (manager 2014-2016, co-manager 2002-2014, and manager 1991-2002), Lauren Romeo (assistant portfolio manager 2006-2016), and Steven McBoyle since 2016 (assistant portfolio manager 2014-2016)

9/3/2002 12:00:00 AM

Share:

Subscribe:

Sign Up

Follow: