Royce Special Equity Multi-Cap Fund (RSEMX, RSMCX, RMUIX, RSMLX)
648

At a Glance

Why invest in Special Equity Multi-Cap?

  • Employs a classic value approach with accounting skepticism to identify a limited number of fundamentally strong, attractively undervalued mid- and large-cap companies (generally market caps of $5 billion or higher)
  • Seeks conservatively managed companies with long histories of stable earnings, cash flows, and raising dividends consecutively over time—aka “Dividend Aristocrats”
  • Looks for high-quality companies that have a viable niche or franchise that can be bought below their economic value

As of 09/30/18

  • Mid/Large-Cap
    Value Approach
    $57.60B
    Avg. Market Cap
  • High
    Volatility
    92%
    Active Share
  • Fund
    Longevity
    7+
    Years of History

Portfolio Management

"A deep understanding of accounting principles gives me a chance to get at the veracity of a company’s finances by scrutinizing the financial reports… I spend a lot of time going over the numbers. Frankly, I benefit, because I don’t believe everyone does this kind of work."
Charlie Dreifus

Performance

Average Annual Total Returns (%)

Outperformed Russell 1000 for the Quarter period as of 09/30/18.
QTR YTD 1YR 3YR 5YR SINCE INCEPT. DATE
Special Equity Multi-Cap 9.39 3.1911.2810.776.429.94 12/31/10
Russell 1000 7.42 10.4917.7617.0713.6713.72 N/A

Annual Operating Expenses: Gross 1.39 Net 1.24

SEP YTD 1YR 3YR 5YR SINCE INCEPT. DATE
Special Equity Multi-Cap 1.06 3.1911.2810.776.429.94 12/31/10
Russell 1000 0.38 10.4917.7617.0713.6713.72 N/A

Annual Operating Expenses: Gross 1.39 Net 1.24

OCT YTD 1YR 3YR 5YR SINCE INCEPT. DATE
Special Equity Multi-Cap -6.86 -3.891.616.844.538.87 12/31/10
Russell 1000 -5.11 4.849.8712.8811.6512.87 N/A

Annual Operating Expenses: Gross 1.39 Net 1.24

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 total gross 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 to waive fees and/or reimburse operating expenses to the extent necessary to maintain the Fund'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 1.24% through April 30, 2019.

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 12/31/10 and 09/30/18

Special Equity Multi-Cap$20,833.61
Russell 1000$27,080.60

Risk

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

The Fund has a high volatility within its peer group of 1100 Large-Cap Funds based on 5-year rolling standard deviation.

Capture Ratios Fund's First Full Quarter (12/31/10) 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

Morningstar Statistical Measures as of 09/30/18

Sharpe RatioStandard Deviation
Special Equity Multi-Cap0.5511.48
Russell 10001.349.56
Category Median1.1610.11
Best Quartile Breakpoint1.309.56

Category Median and Best Quartile Breakpoint based on 1100 large-cap objective funds (oldest class only) with at least five years of history.
Sharpe Ratio Standard Deviation
Special Equity Multi-Cap
Russell 1000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/18

mstar-RSEMX

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

  RSEMX Russell 1000
Average Market Cap
57.60B
86.20B
92%
-
2017 Portfolio Turnover
28%
-
Weighted Average P/E,
23.5x
21.3x
Weighted Average P/B
5.3x
3.3x
U.S. Investments (% of Net Assets)
87.2%
-
Non-U.S. Investments (% of Net Assets)
0.0%
-

Portfolio Allocation

  • Total
    Holdings
    19


SECTORS
RSEMX (%) RUSSELL
1000 (%)
Industrials
36.9
10.0
Consumer Discretionary
21.4
10.4
Information Technology
15.2
21.3
Consumer Staples
9.4
6.3
Materials
4.3
2.8
Health Care
-
14.5
Financials
-
13.4
Communication Services
-
9.4
Energy
-
5.8
Real Estate
-
3.3
Utilities
-
2.8
Cash and Cash Equivalents
12.8
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Apple
9.0
Illinois Tool Works
8.9
Lowe's Companies
8.1
Cisco Systems
6.2
Genuine Parts
6.0
Parker Hannifin
5.1
Carlisle Companies
4.7
Kimberly-Clark
4.7
Procter & Gamble
4.7
General Dynamics
4.0
Top 10 as % of Net Assets
61.4

SECTORS
RSEMX (%) RUSSELL
1000 (%)
Industrials
36.9
10.0
Consumer Discretionary
21.4
10.4
Information Technology
15.2
21.3
Consumer Staples
9.4
6.3
Materials
4.3
2.8
Health Care
-
14.5
Financials
-
13.4
Communication Services
-
9.4
Energy
-
5.8
Real Estate
-
3.3
Utilities
-
2.8
Cash and Cash Equivalents
12.8
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Apple
9.0
Illinois Tool Works
8.9
Lowe's Companies
8.1
Cisco Systems
6.2
Genuine Parts
6.0
Parker Hannifin
5.1
Carlisle Companies
4.7
Kimberly-Clark
4.7
Procter & Gamble
4.7
General Dynamics
4.0
Top 10 as % of Net Assets
61.4

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 0.1008 - 0.3011 - 0.4019 15.36
12/14/16 12/15/16 12/15/16 0.1264 - - - 0.1264 14.17
12/16/15 12/17/15 12/17/15 0.3101 0.1796 0.6034 - 1.0931 12.39
12/16/14 12/17/14 12/17/14 0.1000 0.1200 0.5400 - 0.7600 -
12/16/14 12/17/14 12/17/14 0.0692 0.1235 0.5362 - 0.7289 15.19
12/04/13 12/05/13 12/05/13 0.0968 0.1413 0.6890 - 0.9271 14.52
12/27/12 12/28/12 12/28/12 0.0040 - - - 0.0040 11.51
12/05/12 12/06/12 12/06/12 0.0853 0.0057 0.0995 - 0.1905 11.56
12/07/11 12/08/11 12/08/11 0.0645 0.0148 - - 0.0793 10.59

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 0.85
Distribution (12b-1) fees 0.25
Other expenses 0.29
Total annual Fund operating expenses 1.39
Fee waivers and/or expense reimbursements (0.15)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.24
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 (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 1.24% 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 mid-cap and larger-cap stocks. The Fund's investments in mid-cap stocks may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) 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. 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 1000 index is an unmanaged, capitalization-weighted index of domestic large-cap stocks.It measures the performance of the 1,000 largest 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.

12/31/2010 12:00:00 AM

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