Royce Small-Cap Value Fund (RYVFX, RVVHX, RVFCX, RVFIX, RVFKX, RVVRX)
206

At a Glance

Why invest in Small-Cap Value?

  • Small-cap value fund (generally market caps up to $3 billion) that focuses on companies with above-average profitability and low leverage that are selling at attractive valuations due to what Royce believes are temporary factors
  • Pursues opportunities when expectations are low and focuses on industries where Royce sees the greatest number of compelling bargains
  • Outperformed its benchmark, the Russell 2000 Index, for the since inception (6/14/01) period ended 9/30/18

As of 09/30/18

  • Small-Cap
    Value Approach
    $1.23B
    Avg. Market Cap
  • Average
    Volatility
    96%
    Active Share
  • Lead Manager
    Tenure
    15+
    Years on Fund

Portfolio Management

"My goal is to find companies where expectations built into the current valuation are too low relative to what I believe is far more likely to happen."
Jay Kaplan

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 since inception (06/14/01) period as of 09/30/18.
QTR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Small-Cap Value 0.67 7.5912.4110.185.327.239.309.40 06/14/01
Russell 2000 3.58 11.5115.2417.1211.0711.1110.128.82 N/A

Annual Operating Expenses: 1.88

OCT YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Small-Cap Value -7.44 -0.413.736.123.219.698.368.87 06/14/01
Russell 2000 -10.86 -0.601.8510.688.0112.448.698.06 N/A

Annual Operating Expenses: 1.88

NOV YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Small-Cap Value 1.13 0.726.677.822.9110.748.318.92 06/14/01
Russell 2000 0.27 -0.334.0111.247.8213.478.538.05 N/A

Annual Operating Expenses: 1.88

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. Current performance may be higher or lower than performance quoted. Current month-end performance information may be obtained at www.roycefunds.com. Operating expenses reflect the Fund's total annual operating expenses for the R Class as of the Fund's most current prospectus, and include management fees, 12b-1 distribution and service fees, and other expenses.

All performance and risk information presented in this material prior to the commencement date of R Class shares on 9/14/07 reflects Service Class results. R Class shares bear annual expenses that are higher than those borne by Service Class shares. If R Class's annual expenses had been reflected, total returns prior to 9/14/07 would have been lower.

Rolling Returns

For 75% 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% 30 34
> 5% and ≤ 10% 36 41
> 0% and ≤ 5% 22 25
≤ 0% 0 0

The Fund averaged a 8.1% return over all 88 10-year monthly rolling return periods.

Market Cycle Performance

Peak-Peak - 07/13/07 - 04/29/11
Small-Cap Value16.2%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Small-Cap Value19.4%
Russell 200058.5%

Peak-Current - 06/23/15 - 09/30/18
Small-Cap Value14.9%
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 06/14/01 and 09/30/18

Small-Cap Value$47,308.88
Russell 2000$43,126.32

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 all 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 VALUE (%)SPREAD (%)
03/31/18-0.1-0.6-0.5
03/31/16-1.5+9.1+10.6
09/30/15-11.9-11.0+0.9
09/30/14-7.4-5.7+1.7
06/30/12-3.5-11.2-7.7
09/30/11-21.9-22.1-0.2
06/30/11-1.6-3.6-2.0
06/30/10-9.9-8.2+1.7
03/31/09-15.0-6.2+8.8
12/31/08-26.1-27.2-1.1
09/30/08-1.1-16.3-15.2
03/31/08-9.9+0.1+10.0
12/31/07-4.6-4.5+0.1
09/30/07-3.1-4.4-1.3
06/30/06-5.0-5.9-0.9
03/31/05-5.3-0.6+4.7
09/30/04-2.9+2.4+5.3

Capture Ratios Fund's First Full Quarter (06/30/01) 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

From the Fund's inception, the Fund outperformed the Russell 2000 Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/18

Sharpe RatioStandard Deviation
Small-Cap Value0.4419.39
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 Value
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 09/30/18

mstar-RVVRX

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

  RVVRX Russell 2000
Average Market Cap
1.23B
1.93B
96%
-
2017 Portfolio Turnover
61%
-
Weighted Average P/E,
14.9x
19.2x
Weighted Average P/B
2.0x
2.3x
U.S. Investments (% of Net Assets)
80.4%
-
Non-U.S. Investments (% of Net Assets)
10.7%
-

Portfolio Allocation

  • Total
    Holdings
    81


SECTORS
RVVRX (%) RUSSELL
2000 (%)
Information Technology
25.0
13.9
Financials
24.6
17.4
Industrials
22.4
15.1
Consumer Discretionary
10.5
12.2
Consumer Staples
2.0
2.6
Energy
1.7
4.8
Real Estate
1.5
6.9
Communication Services
1.5
3.3
Health Care
1.4
16.5
Utilities
0.5
3.1
Materials
-
4.2
Cash and Cash Equivalents
8.9
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Insight Enterprises
2.4
Kulicke & Soffa Industries
2.3
Hawaiian Holdings
2.2
Advanced Energy Industries
2.1
Genworth MI Canada
2.1
Miller Industries
2.1
Celestica
2.1
Electro Scientific Industries
2.1
Vishay Intertechnology
2.0
Methode Electronics
2.0
Wabash National
2.0
PC Connection
2.0
Village Super Market Cl. A
2.0
Kimball International Cl. B
1.7
MidWestOne Financial Group
1.6
Camden National
1.6
Allegiant Travel
1.6
Marcus & Millichap
1.5
TrustCo Bank Corp. NY
1.5
Saga Communications Cl. A
1.5
Top 20 as % of Net Assets
38.4

SECTORS
RVVRX (%) RUSSELL
2000 (%)
Financials
25.6
-
Information Technology
23.7
-
Industrials
21.4
-
Consumer Discretionary
12.6
-
Real Estate
1.7
-
Energy
1.7
-
Communication Services
1.6
-
Consumer Staples
1.4
-
Health Care
1.3
-
Utilities
0.4
-
Cash and Cash Equivalents
8.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Electro Scientific Industries
3.9
Insight Enterprises
2.6
Genworth MI Canada
2.4
Vishay Intertechnology
2.3
Miller Industries
2.1
Kimball International Cl. B
2.1
Camden National
2.0
TrustCo Bank Corp. NY
2.0
PC Connection
2.0
Methode Electronics
2.0
Benchmark Electronics
1.9
Kulicke & Soffa Industries
1.7
Marcus & Millichap
1.7
Celestica
1.6
Saga Communications Cl. A
1.6
Allegiant Travel
1.6
Houlihan Lokey Cl. A
1.5
Korn/Ferry International
1.5
Wabash National
1.5
Reinsurance Group of America
1.5
Top 20 as % of Net Assets
39.5

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 0.0000 - 0.3351 - 0.3351 9.52
12/14/16 12/15/16 12/15/16 0.0282 - 0.5011 - 0.5293 9.72
12/16/15 12/17/15 12/17/15 0.0195 0.0600 1.5940 - 1.6735 8.43
12/16/14 12/17/14 12/17/14 0.0200 0.4000 1.2500 - 1.6700 -
12/16/14 12/17/14 12/17/14 0.0000 0.4014 1.2648 - 1.6662 11.10
12/04/13 12/05/13 12/05/13 0.0000 0.5294 0.4425 - 0.9719 12.73
12/05/12 12/06/12 12/06/12 0.0706 0.0070 0.5186 - 0.5962 10.91
12/07/11 12/08/11 12/08/11 0.0388 - 0.7472 - 0.7860 10.75
12/08/10 12/09/10 12/09/10 0.0036 - - - 0.0036 12.25

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 180 days) 0.00

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 0.50
Other expenses 0.38
Total annual Fund operating expenses 1.88

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. In addition, as of 09/30/18 the Fund invested 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 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-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.

Managed by Jay Kaplan since 2013 (co-manager 2003-2013)

9/14/2007 12:00:00 AM

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