Royce Small-Cap Leaders Fund (RYOHX, ROHHX, ROHRX, ROHKX)
548

At a Glance

Why invest in Small-Cap Leaders?

  • Small-cap core fund (generally market caps up to $3 billion) that invests in what Royce believes are leading small-cap companies that have strong business models and competitive positions, superior balance sheets, and attractive prospects for growth
  • 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
  • Approach focuses on companies with proven, sustainable high return on invested capital business models that are also selling at attractive valuations.

As of 09/30/18

  • Small-Cap
    Core Approach
    $1.75B
    Avg. Market Cap
  • Average
    Volatility
    96%
    Active Share
  • Lead Manager
    Tenure
    12+
    Years on Fund

Portfolio Management

"I'm looking for small-cap companies with high returns on invested capital that I believe can compound value by reinvesting current earnings back into the business at high rates of return for long periods of time. I aim to buy when the stock price is depressed due to cyclical or temporary company-specific issues."
Lauren Romeo

Performance

Average Annual Total Returns (%)

QTR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Small-Cap Leaders 3.07 6.8311.4814.436.008.669.599.71 06/30/03
Russell 2000 3.58 11.5115.2417.1211.0711.1110.1210.57 N/A

Annual Operating Expenses: Gross 1.59 Net 1.49

OCT YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Small-Cap Leaders -10.65 -4.55-1.987.863.079.828.638.85 06/30/03
Russell 2000 -10.86 -0.601.8510.688.0112.448.699.68 N/A

Annual Operating Expenses: Gross 1.59 Net 1.49

NOV YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Small-Cap Leaders 0.00 -4.55-0.398.502.9610.748.598.83 06/30/03
Russell 2000 0.27 -0.334.0111.247.8213.478.539.68 N/A

Annual Operating Expenses: Gross 1.59 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 for the Service Class reflect the Fund’s gross total annual operating expenses 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, 2019.

Rolling Returns

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

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% 15 23
> 5% and ≤ 10% 45 70
> 0% and ≤ 5% 4 6
≤ 0% 0 0

The Fund averaged a 7.8% return over all 64 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 8/31/18 index peak through current (9/30/18).
Peak-Peak - 07/13/07 - 04/29/11
Small-Cap Leaders27.6%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Small-Cap Leaders22.6%
Russell 200058.5%

Peak-Current - 06/23/15 - 09/30/18
Small-Cap Leaders26.0%
Russell 200037.0%

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 06/30/03 and 09/30/18

Small-Cap Leaders$41,078.15
Russell 2000$46,291.31

Risk

Average Volatility vs. Peer Group as of 09/30/18

The Fund has a average volatility within its peer group of 522 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 09/30/18

The Fund outperformed the Russell 2000 during two out of three 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 (%)SMALL-CAP LEADERS (%)SPREAD (%)
03/31/18-0.1-0.8-0.7
03/31/16-1.5+5.2+6.7
09/30/15-11.9-13.7-1.8
09/30/14-7.4-9.0-1.6
06/30/12-3.5-10.1-6.6
09/30/11-21.9-23.5-1.6
06/30/11-1.6-2.7-1.1
06/30/10-9.9-9.4+0.5
03/31/09-15.0-9.4+5.6
12/31/08-26.1-21.8+4.3
09/30/08-1.1-3.1-2.0
03/31/08-9.9-8.2+1.7
12/31/07-4.6-3.8+0.8
09/30/07-3.1+1.3+4.4
06/30/06-5.0-7.4-2.4
03/31/05-5.3-2.9+2.4
09/30/04-2.9-2.4+0.5

Capture Ratios Fund's First Full Quarter (06/30/03) to 09/30/18

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 09/30/18

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

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/18

The Fund produced lower volatility than the Russell 2000, 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.
Sharpe RatioStandard Deviation
Small-Cap Leaders0.5218.76
Russell 20000.6319.39
Category Median0.6518.98
Best Quartile Breakpoint0.7118.06

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
Small-Cap Leaders
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 09/30/18

mstar-RYOHX

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 09/30/18

  RYOHX Russell 2000
Average Market Cap
1.75B
1.93B
96%
-
2017 Portfolio Turnover
74%
-
Weighted Average P/E,
17.3x
19.2x
Weighted Average P/B
2.6x
2.3x
U.S. Investments (% of Net Assets)
73.0%
-
Non-U.S. Investments (% of Net Assets)
16.6%
-

Portfolio Allocation

  • Total
    Holdings
    77


SECTORS
RYOHX (%) RUSSELL
2000 (%)
Industrials
28.5
15.1
Information Technology
20.1
13.9
Financials
12.5
17.4
Consumer Discretionary
6.7
12.2
Materials
5.0
4.2
Energy
4.9
4.8
Consumer Staples
4.4
2.6
Health Care
4.1
16.5
Real Estate
2.1
6.9
Communication Services
1.3
3.3
Utilities
-
3.1
Cash and Cash Equivalents
10.4
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Minerals Technologies
3.1
Greenbrier Companies (The)
3.0
Artisan Partners Asset Management Cl. A
2.9
Meritor
2.9
Genworth MI Canada
2.6
Pason Systems
2.6
RLI Corp.
2.3
Sun Hydraulics
2.2
Advanced Energy Industries
2.2
Marcus & Millichap
2.1
CIRCOR International
2.1
Cohu
2.0
Stella-Jones
1.9
Inter Parfums
1.8
j2 Global
1.8
Lazard Cl. A
1.7
Bio-Techne
1.7
Kulicke & Soffa Industries
1.6
Kimball International Cl. B
1.6
TGS-NOPEC Geophysical
1.6
Top 20 as % of Net Assets
43.7

SECTORS
RYOHX (%) RUSSELL
2000 (%)
Industrials
25.7
-
Information Technology
17.0
-
Financials
13.2
-
Consumer Discretionary
8.2
-
Consumer Staples
4.9
-
Energy
4.5
-
Materials
4.0
-
Real Estate
3.7
-
Health Care
3.2
-
Communication Services
1.4
-
Cash and Cash Equivalents
14.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Genworth MI Canada
2.9
Marcus & Millichap
2.8
Pason Systems
2.8
CIRCOR International
2.7
Artisan Partners Asset Management Cl. A
2.5
RLI Corp.
2.5
Minerals Technologies
2.4
Meritor
2.3
Greenbrier Companies (The)
2.3
Houlihan Lokey Cl. A
2.2
Sun Hydraulics
1.9
Kimball International Cl. B
1.9
Inter Parfums
1.8
j2 Global
1.7
Cohu
1.7
Lazard Cl. A
1.6
Fabrinet
1.6
Stella-Jones
1.6
Kulicke & Soffa Industries
1.6
Bio-Techne
1.5
Top 20 as % of Net Assets
42.3

Portfolio Holdings

View the complete list of holdings for this fund as of 09/30/18. 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 0.0267 - 1.0986 - 1.1253 6.43
12/14/16 12/15/16 12/15/16 0.0397 - 0.7279 - 0.7676 7.06
12/16/15 12/17/15 12/17/15 0.0084 0.0400 1.3190 - 1.3674 6.25
12/16/14 12/17/14 12/17/14 - 0.0100 0.9900 - 1.0000 -
12/16/14 12/17/14 12/17/14 0.0000 0.0135 1.0338 - 1.0473 8.45
12/04/13 12/05/13 12/05/13 0.0065 0.0530 1.3629 - 1.4224 9.67
12/27/12 12/28/12 12/28/12 0.0215 - - - 0.0215 8.65
12/05/12 12/06/12 12/06/12 0.0682 0.0050 0.7332 - 0.8064 8.51
12/07/11 12/08/11 12/08/11 0.0000 0.0349 0.4107 - 0.4456 8.52
12/08/10 12/09/10 12/09/10 0.0000 0.0193 0.0875 - 0.1068 9.52

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 0.25
Other expenses 0.34
Total annual Fund operating expenses 1.59
Fee waivers and/or expense reimbursements (0.10)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.49
Royce & Associates has contractually agreed to waive fees and/or reimburse operating 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, 2019.

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. The Fund invests primarily 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 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. 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.

Lauren Romeo lead manager since 2014 (co-manager 2013-2014, manager 2010-2013, and assistant portfolio manager 2006-2010)

6/30/2003 12:00:00 AM

Share:

Subscribe:

Sign Up

Follow: