47

At a Glance

Why invest in Special Equity Multi-Cap?

  • Employs a classic value approach with accounting skepticism to identify 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 06/30/16

  • Mid/Large-Cap
    Value Approach
    $17.59B
    Avg. Market Cap
  • Average
    Volatility
    95%
    Active Share
  • Fund
    Longevity
    5+
    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 (%)

QTR YTD 1YR 3YR 5YR SINCE INCEPT. DATE
Special Equity Multi-Cap -6.37 -0.86-11.962.176.907.70 12/31/10
Russell 1000 2.54 3.742.9311.4811.8812.01 N/A

Annual Operating Expenses: Gross 2.19 Net 1.99

AUG YTD 1YR 3YR 5YR SINCE INCEPT. DATE
Special Equity Multi-Cap 3.20 6.993.964.2510.088.92 12/31/10
Russell 1000 0.13 7.8311.6912.0214.6012.39 N/A

Annual Operating Expenses: Gross 2.19 Net 1.99

SEP YTD 1YR 3YR 5YR SINCE INCEPT. DATE
Special Equity Multi-Cap -1.03 5.895.451.5710.528.62 12/31/10
Russell 1000 -0.11 7.7113.3410.3616.2212.22 N/A

Annual Operating Expenses: Gross 2.19 Net 1.99

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, Inc., 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 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 1.99% through April 30, 2016.

All performance and risk information presented in this material prior to the commencement date of Consultant Class shares on 1/24/14 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 1/24/14 would have been lower.

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 12/31/10 and 06/30/16

Special Equity Multi-Cap$15,035.00
Russell 1000$18,647.76

Portfolio Impactas of 06/30/16

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Financials
4.81
0.08
0.03
Health Care
0.10
1.83
0.01
Information Technology
16.43
-7.11
-1.04
Industrials
41.43
-5.49
-2.27
Consumer Discretionary
28.67
-8.66
-2.66
Cash
8.56
0.06
0.01

Top Contributors

INDUSTRYSECTORGAIN (%)
DistributorsConsumer Discretionary0.22
MediaConsumer Discretionary0.15
Industrial ConglomeratesIndustrials0.11
Communications EquipmentInformation Technology0.09
Aerospace & DefenseIndustrials0.03

Top Detractors

INDUSTRYSECTORGAIN (%)
Multiline RetailConsumer Discretionary-2.29
Professional ServicesIndustrials-2.20
Technology Hardware, Storage & PeripheralsInformation Technology-0.77
Specialty RetailConsumer Discretionary-0.34
Electronic Equipment, Instruments & ComponentsInformation Technology-0.25

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Genuine PartsDistributorsConsumer Discretionary0.22
Dover CorporationMachineryIndustrials0.19
Viacom Cl. BMediaConsumer Discretionary0.15
Illinois Tool WorksMachineryIndustrials0.11
3MIndustrial ConglomeratesIndustrials0.11

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
NordstromMultiline RetailConsumer Discretionary-2.29
ManpowerGroupProfessional ServicesIndustrials-1.39
Robert Half InternationalProfessional ServicesIndustrials-0.81
AppleTechnology Hardware, Storage & PeripheralsInformation Technology-0.77
Wabtec CorporationMachineryIndustrials-0.30
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Industrials
38.43
2.92
1.08
Financials
4.77
3.61
0.20
Health Care
0.37
8.03
0.05
Consumer Discretionary
30.59
-1.72
-0.53
Information Technology
18.43
-3.21
-0.64
Cash
7.41
0.13
0.01

Top Contributors

INDUSTRYSECTORGAIN (%)
MachineryIndustrials1.83
DistributorsConsumer Discretionary1.24
Specialty RetailConsumer Discretionary0.68
Electrical EquipmentIndustrials0.62
Trading Companies & DistributorsIndustrials0.46

Top Detractors

INDUSTRYSECTORGAIN (%)
Professional ServicesIndustrials-2.34
Multiline RetailConsumer Discretionary-1.32
Auto ComponentsConsumer Discretionary-0.90
Textiles, Apparel & Luxury GoodsConsumer Discretionary-0.57
Technology Hardware, Storage & PeripheralsInformation Technology-0.52

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Genuine PartsDistributorsConsumer Discretionary1.24
Dicks Sporting GoodsSpecialty RetailConsumer Discretionary0.95
Illinois Tool WorksMachineryIndustrials0.69
Grainger (W.W.)Trading Companies & DistributorsIndustrials0.46
Parker HannifinMachineryIndustrials0.46

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
ManpowerGroupProfessional ServicesIndustrials-1.65
NordstromMultiline RetailConsumer Discretionary-1.32
Lear CorporationAuto ComponentsConsumer Discretionary-0.90
Robert Half InternationalProfessional ServicesIndustrials-0.69
Ralph Lauren Cl. ATextiles, Apparel & Luxury GoodsConsumer Discretionary-0.57
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Health Care
0.32
17.53
0.09
Materials
0.91
-3.37
-0.09
Information Technology
20.73
-2.95
-0.59
Industrials
33.29
-4.52
-0.90
Financials
6.18
-11.02
-0.98
Consumer Discretionary
31.25
-21.73
-7.75
Cash
7.31
0.17
0.01

Top Contributors

INDUSTRYSECTORGAIN (%)
DistributorsConsumer Discretionary1.15
MachineryIndustrials0.77
SoftwareInformation Technology0.73
Aerospace & DefenseIndustrials0.62
Industrial ConglomeratesIndustrials0.44

Top Detractors

INDUSTRYSECTORGAIN (%)
Multiline RetailConsumer Discretionary-3.18
Specialty RetailConsumer Discretionary-2.90
Professional ServicesIndustrials-2.87
MediaConsumer Discretionary-1.66
Technology Hardware, Storage & PeripheralsInformation Technology-1.48

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Microsoft CorporationSoftwareInformation Technology1.21
Genuine PartsDistributorsConsumer Discretionary1.15
Illinois Tool WorksMachineryIndustrials0.83
Raytheon CompanyAerospace & DefenseIndustrials0.51
3MIndustrial ConglomeratesIndustrials0.44

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
NordstromMultiline RetailConsumer Discretionary-3.18
Bed Bath & BeyondSpecialty RetailConsumer Discretionary-2.44
ManpowerGroupProfessional ServicesIndustrials-2.07
AppleTechnology Hardware, Storage & PeripheralsInformation Technology-1.48
Viacom Cl. BMediaConsumer Discretionary-1.34
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
21.95
51.57
9.98
Industrials
25.17
25.40
5.26
Health Care
5.88
76.39
4.04
Consumer Staples
0.05
29.99
0.22
Materials
0.51
-2.12
-0.17
Energy
4.24
-2.90
-0.19
Financials
6.20
3.30
-0.80
Consumer Discretionary
29.00
-14.80
-5.66
Cash
6.99
0.22
0.02

Top Contributors

INDUSTRYSECTORGAIN (%)
MachineryIndustrials4.03
Electronic Equipment, Instruments & CompInformation Technology2.74
Health Care Equipment & SuppliesHealth Care2.72
SoftwareInformation Technology2.65
Semiconductors & Semiconductor EquipmentInformation Technology2.58

Top Detractors

INDUSTRYSECTORGAIN (%)
Specialty RetailConsumer Discretionary-3.68
MediaConsumer Discretionary-2.21
Professional ServicesIndustrials-2.04
Multiline RetailConsumer Discretionary-1.84
Textiles, Apparel & Luxury GoodsConsumer Discretionary-0.89

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Molex Cl. AElectronic Equipment, Instruments & CompInformation Technology2.74
Microsoft CorporationSoftwareInformation Technology2.70
KLA-TencorSemiconductors & Semiconductor EquipmentInformation Technology1.79
Genuine PartsDistributorsConsumer Discretionary1.78
Illinois Tool WorksMachineryIndustrials1.73

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Bed Bath & BeyondSpecialty RetailConsumer Discretionary-2.32
NordstromMultiline RetailConsumer Discretionary-1.84
Viacom Cl. BMediaConsumer Discretionary-1.77
ManpowerGroupProfessional ServicesIndustrials-1.24
Gap (The)Specialty RetailConsumer Discretionary-1.12
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Information Technology
22.59
93.23
16.98
Consumer Discretionary
28.46
38.85
12.29
Industrials
22.97
55.67
12.19
Health Care
9.19
112.34
7.23
Consumer Staples
2.85
84.44
3.71
Materials
0.30
-2.12
-0.17
Energy
3.70
-12.44
-0.21
Financials
3.72
2.27
-0.80
Cash
6.21
0.34
0.02

Top Contributors

INDUSTRYSECTORGAIN (%)
MachineryIndustrials6.81
Specialty RetailConsumer Discretionary5.67
Health Care Equipment & SuppliesHealth Care4.91
Semiconductors & Semiconductor EquipmentInformation Technology4.31
SoftwareInformation Technology4.20

Top Detractors

INDUSTRYSECTORGAIN (%)
Professional ServicesIndustrials-2.04
Multiline RetailConsumer Discretionary-1.10
Capital MarketsFinancials-0.80
Construction & EngineeringIndustrials-0.52
Metals & MiningMaterials-0.17

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Microsoft CorporationSoftwareInformation Technology4.25
Molex Cl. AElectronic Equipment, Instruments & CompInformation Technology3.94
Genuine PartsDistributorsConsumer Discretionary3.82
Cisco SystemsCommunications EquipmentInformation Technology3.50
Gap (The)Specialty RetailConsumer Discretionary2.90

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Viacom Cl. BMediaConsumer Discretionary-1.77
ManpowerGroupProfessional ServicesIndustrials-1.24
Bed Bath & BeyondSpecialty RetailConsumer Discretionary-0.94
Robert Half InternationalProfessional ServicesIndustrials-0.80
Franklin ResourcesCapital MarketsFinancials-0.76

Risk

Average Volatility vs. Peer Group as of 06/30/16

The Fund has a average volatility within its peer group of 1035 Large-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/16

Market Downturns (%)

DownMarketImg

Russell 1000 Down Quarters

QUARTER ENDRUSSELL 1000 (%)SPECIAL EQUITY MULTI-CAP (%)SPREAD (%)
09/30/15-6.8-11.3-4.5
06/30/12-3.1-4.9-1.8
09/30/11-14.7-9.9+4.8

Capture Ratios Fund's First Full Quarter (12/31/10) to 06/30/16

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 06/30/16

Morningstar Statistical Measures as of 06/30/16

Sharpe RatioStandard Deviation
Special Equity Multi-Cap0.5713.19
Russell 10000.9712.33
Category Median0.8013.08
Best Quartile Breakpoint0.9112.17

Category Median and Best Quartile Breakpoint based on 1035 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 06/30/16

mstar-RSMLX

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 06/30/16

  RSMLX Russell 1000
Average Market Cap
17.59B
57.46B
95%
-
2015 Portfolio Turnover
31%
-
Weighted Average P/E,
15.0x
19.8x
Weighted Average P/B
3.3x
2.7x
U.S. Investments (% of Net Assets)
87.3%
-
Non-U.S. Investments (% of Net Assets)
0.0%
-

Portfolio Allocation

  • Total
    Holdings
    23


SECTORS
RSMLX (%) RUSSELL
1000 (%)
Industrials
41.4
10.0
Consumer Discretionary
25.9
12.8
Information Technology
15.1
19.3
Financials
4.9
16.8
Health Care
-
14.5
Consumer Staples
-
9.9
Energy
-
7.1
Utilities
-
3.7
Materials
-
3.2
Telecommunication Services
-
2.8
Cash and Cash Equivalents
12.7
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Genuine Parts
7.5
Apple
7.3
Illinois Tool Works
6.1
ManpowerGroup
5.8
Robert Half International
5.6
Nordstrom
5.1
T. Rowe Price Group
4.9
Cisco Systems
4.8
Dicks Sporting Goods
4.6
Parker Hannifin
4.6
Top 10 as % of Net Assets
56.3

SECTORS
RSMLX (%) RUSSELL
1000 (%)
Industrials
42.9
-
Consumer Discretionary
27.7
-
Information Technology
15.1
-
Financials
4.5
-
Consumer Staples
0.4
-
Cash and Cash Equivalents
9.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Apple
8.0
Genuine Parts
7.4
Illinois Tool Works
6.4
ManpowerGroup
6.3
Robert Half International
5.8
Nordstrom
5.0
Dicks Sporting Goods
4.9
Parker Hannifin
4.9
Cisco Systems
4.8
T. Rowe Price Group
4.5
Top 10 as % of Net Assets
58.0

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/16. 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 ($) REINVEST
PRICE ($)
12/16/15 12/17/15 12/17/15 0.2501 0.1796 0.6034 - 1.0331 8.16
12/16/14 12/17/14 12/17/14 0.0580 0.1235 0.5362 - 0.7177 10.44

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 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 0.34
Total annual Fund operating expenses 2.19
Fee waivers and/or expense reimbursements (0.20)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.99

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 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. 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 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.

1/24/2014 12:00:00 AM

Share:

Subscribe:

Sign Up

Follow: