Royce Small/Mid-Cap Premier Fund (RGFAX, RHFHX, RYGCX, RHFRX, RHFKX)
63

At a Glance

Why invest in Small/Mid-Cap Premier?

  • Small/mid-cap core fund (generally market caps up to $15 billion) that invests primarily in what Royce believes are industry leaders with discernible competitive advantages, high returns on invested capital, and a sustainable, moat-like franchise
  • Focuses on leading quality companies, those with sustainable, moat-like franchises, discernible competitive advantages, a history of prudent capital allocation, and opportunities to profitably reinvest excess cash flow
  • Average annual total return of 11.5% since inception (12/27/95) through 6/30/18

As of 06/30/18

  • Small/Mid-Cap
    Core Approach
    $5.29B
    Avg. Market Cap
  • Below Average
    Volatility
    95%
    Active Share
  • Fund
    Longevity
    22+
    Years of History

Portfolio Management

"My approach is to remain disciplined, develop well-reasoned, well-researched opinions; analyze business ecosystems and all the forces that are at play; and perhaps most importantly, remember that quality in the end wins out."
Steven McBoyle

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2500 for the 20-Year and since inception (12/27/95) periods as of 06/30/18. Outpaced Russell 2000 for the 20-Year and since inception (12/27/95) periods as of 06/30/18.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Small/Mid-Cap Premier -0.84 -3.6210.067.567.057.838.759.7411.46 12/27/95
Russell 2500 5.71 5.4616.2410.3012.2910.7410.999.1110.26 N/A
Russell 2000 7.75 7.6617.5710.9612.4610.6010.508.039.07 N/A

Annual Operating Expenses: Gross 2.24 Net 2.09

JUL YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Small/Mid-Cap Premier 3.47 -0.2712.559.366.737.968.5710.2611.59 12/27/95
Russell 2500 1.93 7.5017.2811.0811.3010.8710.749.6010.31 N/A
Russell 2000 1.74 9.5418.7312.0411.3310.3910.188.589.12 N/A

Annual Operating Expenses: Gross 2.24 Net 2.09

AUG YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Small/Mid-Cap Premier -0.09 -0.3613.689.496.457.338.6310.3411.56 12/27/95
Russell 2000 N/A N/AN/AN/AN/AN/AN/AN/AN/A N/A
Russell 2500 N/A N/AN/AN/AN/AN/AN/AN/AN/A N/A

Annual Operating Expenses: Gross 2.24 Net 2.09

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. Consultant Class shares redeemed within 365 days of purchase may be subject to a 1% contingent deferred sales charge, payable to the Fund's distributor, Royce Fund Services, LLC, 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 Consultant 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 to waive fees and/or reimburse operating expenses to the extent necessary to maintain the Consultant Class's net annual operating expenses (exceeding 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 2.09% through April 30, 2019. 

All performance and risk information presented in this material prior to the commencement date of Consultant Class shares on 12/7/01 reflects Service Class results. Consultant Class shares bear annual expenses that are higher than those borne by Service Class shares. If Consultant Class's annual expenses had been reflected, total returns prior to 12/7/01 would have been lower.

Rolling Returns

For 91% 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% 41 27
> 5% and ≤ 10% 97 64
> 0% and ≤ 5% 13 9
≤ 0% 0 0

The Fund averaged a 9.4% return over all 151 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2500 in one of the two previous full market cycle periods.
Peak-Peak - 07/13/07 - 04/29/11
Small/Mid-Cap Premier20.7%
Russell 25009.2%

Peak-Peak - 04/29/11 - 06/23/15
Small/Mid-Cap Premier16.8%
Russell 250062.8%

Peak-Current - 06/23/15 - 06/30/18
Small/Mid-Cap Premier21.2%
Russell 250030.1%

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 12/27/95 and 06/30/18

Small/Mid-Cap Premier$115,069.30
Russell 2500$90,144.62

Risk

Below Average Volatility vs. Peer Group as of 06/30/18

The Fund has a below average volatility within its peer group of 937 Small/Mid-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/18

The Fund outperformed the Russell 2500 during four out of five downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg

Russell 2500 Down Quarters

QUARTER ENDRUSSELL 2500 (%)SMALL/MID-CAP PREMIER (%)SPREAD (%)
03/31/18-0.1-2.8-2.7
03/31/18-0.2-2.8-2.6
03/31/16-1.5+4.6+6.1
09/30/15-11.9-10.6+1.3
09/30/15-10.3-10.6-0.3
06/30/15-0.3-0.30.0
09/30/14-5.3-7.6-2.3
09/30/14-7.4-7.6-0.2
06/30/12-3.5-9.6-6.1
06/30/12-4.1-9.6-5.5
09/30/11-21.2-23.2-2.0
09/30/11-21.9-23.2-1.3
06/30/11-1.6-2.6-1.0
06/30/11-0.6-2.6-2.0
06/30/10-10.0-8.7+1.3
06/30/10-9.9-8.7+1.2
03/31/09-15.0-7.9+7.1
03/31/09-11.4-7.9+3.5
12/31/08-26.3-25.1+1.2
12/31/08-26.1-25.1+1.0
09/30/08-1.1-4.1-3.0
09/30/08-6.7-4.1+2.6
03/31/08-9.4-11.1-1.7
03/31/08-9.9-11.1-1.2
12/31/07-4.6-4.5+0.1
12/31/07-4.3-4.5-0.2
09/30/07-2.5-2.0+0.5
09/30/07-3.1-2.0+1.1
06/30/06-5.0-3.9+1.1
06/30/06-4.3-3.9+0.4
03/31/05-3.1-7.1-4.0
03/31/05-5.3-7.1-1.8
09/30/04-2.9-3.8-0.9
09/30/04-2.5-3.8-1.3

Capture Ratios Fund's First Full Quarter (12/31/95) to 06/30/18

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 06/30/18

Over the past 5 years, the Fund produced lower volatility than the Russell 2500 Index.
Over the past 3 years, the Fund produced lower volatility than the Russell 2500 Index.
From the Fund's inception, the Fund outperformed the Russell 2500 Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 06/30/18

The Fund produced lower volatility than the Russell 2500 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
The Fund produced lower volatility than the Russell 2500 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Small/Mid-Cap Premier0.4719.49
Russell 25000.6318.40
Category Median0.6018.47
Best Quartile Breakpoint0.6517.27

Category Median and Best Quartile Breakpoint based on 770 small/mid-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Small/Mid-Cap Premier
Russell 2500
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/18

mstar-RYGCX

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 06/30/18

  RYGCX Russell 2500
Average Market Cap
5.29B
3.66B
95%
-
2017 Portfolio Turnover
54%
-
Weighted Average P/E,
17.9x
20.4x
Weighted Average P/B
2.5x
2.4x
U.S. Investments (% of Net Assets)
82.2%
-
Non-U.S. Investments (% of Net Assets)
3.1%
-

Portfolio Allocation

  • Total
    Holdings
    70


SECTORS
RYGCX (%) RUSSELL
2500 (%)
Industrials
28.5
15.0
Consumer Discretionary
18.8
13.4
Materials
13.0
5.7
Financials
8.2
15.9
Information Technology
6.3
15.9
Health Care
4.4
12.6
Real Estate
2.8
9.7
Utilities
2.2
3.5
Consumer Staples
1.1
2.8
Energy
-
4.9
Telecommunication Services
-
0.5
Cash and Cash Equivalents
14.7
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Minerals Technologies
3.0
Westlake Chemical
2.8
LKQ Corporation
2.8
Alleghany Corporation
2.8
Kirby Corporation
2.6
Valmont Industries
2.6
Carlisle Companies
2.4
Lincoln Electric Holdings
2.3
Reliance Steel & Aluminum
2.3
UGI Corporation
2.2
CarMax
2.2
Air Lease Cl. A
2.2
Copart
2.1
Stella-Jones
2.1
Lazard Cl. A
1.7
Affiliated Managers Group
1.7
Core-Mark Holding Company
1.7
Children's Place
1.6
ManpowerGroup
1.6
Wolverine World Wide
1.6
Top 20 as % of Net Assets
44.3

SECTORS
RYGCX (%) RUSSELL
2500 (%)
Industrials
28.5
15.0
Consumer Discretionary
18.8
13.4
Materials
13.0
5.7
Financials
8.2
15.9
Information Technology
6.3
15.9
Health Care
4.4
12.6
Real Estate
2.8
9.7
Utilities
2.2
3.5
Consumer Staples
1.1
2.8
Energy
-
4.9
Telecommunication Services
-
0.5
Cash and Cash Equivalents
14.7
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Minerals Technologies
3.0
Westlake Chemical
2.8
LKQ Corporation
2.8
Alleghany Corporation
2.8
Kirby Corporation
2.6
Valmont Industries
2.6
Carlisle Companies
2.4
Lincoln Electric Holdings
2.3
Reliance Steel & Aluminum
2.3
UGI Corporation
2.2
CarMax
2.2
Air Lease Cl. A
2.2
Copart
2.1
Stella-Jones
2.1
Lazard Cl. A
1.7
Affiliated Managers Group
1.7
Core-Mark Holding Company
1.7
Children's Place
1.6
ManpowerGroup
1.6
Wolverine World Wide
1.6
Top 20 as % of Net Assets
44.3

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/18. 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 0.2246 1.2216 - 1.4462 10.82
12/14/16 12/15/16 12/15/16 0.0000 - 0.5074 - 0.5074 10.54
12/16/15 12/17/15 12/17/15 0.0000 0.0184 1.2395 - 1.2579 9.34
12/16/14 12/17/14 12/17/14 0.0000 0.0657 0.7597 - 0.8254 11.19
12/04/13 12/05/13 12/05/13 0.0000 0.3248 1.6035 - 1.9283 12.13
12/05/12 12/06/12 12/06/12 0.0000 - 0.3625 - 0.3625 11.29
12/07/11 12/08/11 12/08/11 0.0000 0.0658 0.5243 - 0.5901 10.60
12/08/10 12/09/10 12/09/10 0.0000 - 0.2902 - 0.2902 12.15

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 on purchases held for less than 365 days 1.00
Maximum sales charge (load) imposed on reinvested dividends 0.00
Annual Trustee's Fee applies only to GiftShare Accounts$50.00

Annual Fund Operating Expenses (%)

(expenses that you pay each year as a percentage of the value of your investment)

Management fees 0.85
Distribution (12b-1) fees 1.00
Other expenses 0.39
Total annual Fund operating expenses 2.24
Fee waivers and/or expense reimbursements (0.15)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements2.09
Royce & Associates has contractually agreed to waive fees and/or reimburse operating expenses to the extent necessary to maintain the Consultant Class's net annual operating expenses (exceeding 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 2.09% 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 generally invests in small-cap and mid-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 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. 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 2500 is index of the 2,500 smallest publicly traded U.S. companies in the Russell 3000 index. 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.

Steven McBoyle lead manager since 2015 (manager 2012-2015 and assistant portfolio manager 2011-2012), Chuck Royce since 2015 (lead portfolio manager 2010-2015 and manager 1995-2010)

12/7/2001 12:00:00 AM

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