Royce Total Return Fund (RYTRX, RYTFX, RYTCX, RTRIX, RTRWX, RTRRX, RTRKX)
73

At a Glance

Why invest in Total Return?

  • Small-cap value fund (generally market caps up to $3 billion) that invests primarily in dividend-paying companies with high returns on invested capital and strong fundamentals
  • Focuses on quality businesses with the ability to generate excess cash flow and attractive prospects that are selling at prices Royce believes do not fully reflect these attributes
  • Has a long-term history of low volatility and better risk-adjusted returns than its benchmark, the Russell 2000 Index

As of 03/31/18

  • Small-Cap
    Value Approach
    $2.16B
    Avg. Market Cap
  • Low
    Volatility
    90%
    Active Share
  • Lead Manager
    Tenure
    24+
    Years on Fund

Portfolio Management

Assistant Portfolio Managers: George Necakov, CFA®, Chris Flynn

"The process consists of three key elements: We devote as much attention to risk as we do to potential returns—capital preservation means as much as capital appreciation; we have an absolute return orientation that fosters realistic expectations for the stocks we buy; and we have a long-term investment horizon for the dividend-paying companies that we own and the portfolio itself."
Chuck Royce

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 20-Year and since inception (12/15/93) periods as of 03/31/18.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Total Return -2.27 -2.278.388.149.238.119.928.7010.67 12/15/93
Russell 2000 -0.08 -0.0811.798.3911.479.8411.507.379.21 N/A

Annual Operating Expenses: 1.50

MAY YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Total Return 2.74 0.2513.579.209.097.589.168.7910.71 12/15/93
Russell 2000 6.07 6.9020.7610.9812.189.6410.588.019.45 N/A

Annual Operating Expenses: 1.50

JUN YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Total Return 1.76 2.0213.069.659.577.959.169.0310.77 12/15/93
Russell 2000 3.14 10.2620.9411.6712.9310.1910.668.449.57 N/A

Annual Operating Expenses: 1.50

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. Operating expenses reflect total annual operating expenses for the Service Class as of the Fund's most current prospectus and include management fees, 12b-1 distribution and service fees, other expenses, and acquired fund fees and expenses. Acquired fund fees and expenses reflect the estimated amount of the fees and expenses incurred indirectly by the Fund through its investments in mutual funds, hedge funds, private equity funds, and other investment companies.

All performance and risk information presented in this material prior to the commencement date of Service Class shares on 1/3/02 reflects Investment Class results. Service Class shares bear an annual distribution expense that is not borne by Investment Class shares. If Service Class's annual distribution expense had been reflected, total returns prior to 1/3/02 would have been lower.

Rolling Returns

For 98% 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% 54 31
> 5% and ≤ 10% 115 67
> 0% and ≤ 5% 3 2
≤ 0% 0 0

The Fund averaged a 9.4% return over all 172 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 6/23/15 index peak through current (3/31/18).
Peak-Peak - 07/13/07 - 04/29/11
Total Return6.3%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Total Return43.1%
Russell 200058.5%

Peak-Current - 06/23/15 - 03/31/18
Total Return23.9%
Russell 200022.8%

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 12/15/93 and 03/31/18

Total Return$117,287.11
Russell 2000$84,986.35

Risk

Low Volatility vs. Peer Group as of 03/31/18

The Fund has a low volatility within its peer group of 520 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 03/31/18

The Fund outperformed the Russell 2000 during all six downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg
Outperformed in 14 out of 17 down quarters.

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)TOTAL RETURN (%)SPREAD (%)
03/31/18-0.1-2.3-2.2
03/31/16-1.5+5.2+6.7
09/30/15-11.9-9.6+2.3
09/30/14-7.4-6.6+0.8
06/30/12-3.5-4.4-0.9
09/30/11-21.9-17.0+4.9
06/30/11-1.6-1.0+0.6
06/30/10-9.9-7.7+2.2
03/31/09-15.0-11.9+3.1
12/31/08-26.1-23.0+3.1
09/30/08-1.1-4.9-3.8
03/31/08-9.9-5.7+4.2
12/31/07-4.6-3.5+1.1
09/30/07-3.1-2.6+0.5
06/30/06-5.0-3.5+1.5
03/31/05-5.3-1.1+4.2
09/30/04-2.9+0.1+3.0

Capture Ratios Fund's First Full Quarter (12/31/93) to 03/31/18

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 03/31/18

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.
Over the past 3 years, the Fund produced lower volatility than the Russell 2000 Index.
From the Fund's inception, the Fund outperformed the Russell 2000 Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 03/31/18

The Fund beat the Russell 2000 and performed within the top 50% of small-cap objective funds on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 and 50% of small-cap objective funds, 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.
The Fund produced lower volatility than the Russell 2000 and 90% of small-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Total Return0.5416.48
Russell 20000.5619.76
Category Median0.5619.37
Best Decile Breakpoint0.6717.34

Category Median and Best Decile Breakpoint based on 425 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Total Return
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/18

mstar-RYTFX

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 03/31/18

  RYTFX Russell 2000
Average Market Cap
2.16B
1.91B
90%
-
2017 Portfolio Turnover
12%
-
Weighted Average P/E,
18.1x
20.4x
Weighted Average P/B
2.0x
2.3x
U.S. Investments (% of Net Assets)
81.2%
-
Non-U.S. Investments (% of Net Assets)
13.4%
-

Portfolio Allocation

  • Total
    Holdings
    272

Top 200 holdings represented 96% of the Fund's equity investments as of 03/31/18.

SECTORS
RYTFX (%) RUSSELL
2000 (%)
Financials
28.8
18.0
Industrials
25.7
15.3
Materials
11.6
4.3
Consumer Discretionary
8.9
12.1
Information Technology
6.5
17.5
Energy
3.6
3.7
Consumer Staples
3.1
2.3
Health Care
2.4
16.6
Utilities
2.3
3.3
Real Estate
0.8
6.3
Telecommunication Services
0.8
0.6
Bonds & Preferreds
0.2
-
Cash and Cash Equivalents
5.4
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Quaker Chemical
1.9
E-L Financial
1.7
Erie Indemnity Cl. A
1.7
ManpowerGroup
1.5
BOK Financial
1.3
Clarkson
1.3
Alleghany Corporation
1.2
First Citizens BancShares Cl. A
1.2
Hubbell Cl. B
1.1
Chase Corporation
1.1
Franklin Electric
1.1
Bank of Hawaii
1.0
HEICO Corporation
1.0
Methode Electronics
1.0
Tennant Company
1.0
Gentex Corporation
0.9
Ritchie Bros. Auctioneers
0.9
Federated Investors Cl. B
0.9
Expeditors International of Washington
0.9
Kimball International Cl. B
0.9
Top 20 as % of Net Assets
23.6

SECTORS
RYTFX (%) RUSSELL
2000 (%)
Financials
30.2
-
Industrials
25.1
-
Materials
12.0
-
Consumer Discretionary
9.2
-
Information Technology
6.6
-
Energy
4.3
-
Consumer Staples
3.2
-
Utilities
2.4
-
Health Care
2.4
-
Real Estate
1.2
-
Telecommunication Services
0.7
-
Bonds & Preferreds
0.2
-
Cash and Cash Equivalents
2.4
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
E-L Financial
1.8
Erie Indemnity Cl. A
1.7
Quaker Chemical
1.6
BOK Financial
1.4
ManpowerGroup
1.3
First Citizens BancShares Cl. A
1.3
Alleghany Corporation
1.2
Chase Corporation
1.1
Methode Electronics
1.1
Bank of Hawaii
1.1
Franklin Electric
1.0
Clarkson
1.0
HEICO Corporation
1.0
Hubbell Cl. B
1.0
Gentex Corporation
1.0
Ritchie Bros. Auctioneers
1.0
Tennant Company
0.9
SJW Group
0.9
Expeditors International of Washington
0.8
Kimball International Cl. B
0.8
Top 20 as % of Net Assets
23.0

Portfolio Holdings

View the complete list of holdings for this fund as of 03/31/18. Unaudited schedule of portfolio holdings is presented for informational purposes only.
View the 03/31/18 holdings on SEC Form N-Q (unaudited) for the quarter ending 03/31/18.

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 ($) REINVEST
PRICE ($)
06/06/18 06/07/18 06/07/18 0.0350 - - - 0.0350 14.19
03/07/18 03/08/18 03/08/18 0.0250 - - - 0.0250 13.76
12/13/17 12/14/17 12/14/17 0.0000 0.0148 1.8095 - 1.8243 13.52
09/06/17 09/07/17 09/07/17 0.0150 - - - 0.0150 14.07
06/07/17 06/08/17 06/08/17 0.0300 - - - 0.0300 14.20
03/01/17 03/02/17 03/02/17 0.0250 - - - 0.0250 14.34
12/14/16 12/15/16 12/15/16 0.0946 - 1.0906 - 1.1852 14.13
09/07/16 09/08/16 09/08/16 0.0150 - - - 0.0150 13.92
06/01/16 06/02/16 06/02/16 0.0300 - - - 0.0300 13.12
03/02/16 03/03/16 03/03/16 0.0150 - - - 0.0150 12.14
12/16/15 12/17/15 12/17/15 0.0000 - 1.6504 - 1.6504 12.08
09/02/15 09/03/15 09/03/15 0.0250 - - - 0.0250 13.90
06/03/15 06/04/15 06/04/15 0.0300 - - - 0.0300 15.18
03/04/15 03/05/15 03/05/15 0.0350 - - - 0.0350 15.02
12/16/14 12/17/14 12/17/14 0.1022 0.0456 1.5698 - 1.7176 14.59
09/03/14 09/04/14 09/04/14 0.0150 - - - 0.0150 16.76
06/04/14 06/05/14 06/05/14 0.0150 - - - 0.0150 16.66
03/05/14 03/06/14 03/06/14 0.0150 - - - 0.0150 16.69
12/04/13 12/05/13 12/05/13 0.0000 0.1382 1.2786 - 1.4168 16.07
09/04/13 09/05/13 09/05/13 0.0200 - - - 0.0200 15.95
06/05/13 06/06/13 06/06/13 0.0300 - - - 0.0300 15.52
03/06/13 03/07/13 03/07/13 0.0250 - - - 0.0250 14.90
12/05/12 12/06/12 12/06/12 0.0601 0.0273 0.5909 - 0.6783 13.46
09/05/12 09/06/12 09/06/12 0.0250 - - - 0.0250 13.90
06/06/12 06/07/12 06/07/12 0.0350 - - - 0.0350 12.82
03/07/12 03/08/12 03/08/12 0.0250 - - - 0.0250 13.57
12/07/11 12/08/11 12/08/11 0.0000 - 0.1465 - 0.1465 12.46
09/07/11 09/08/11 09/08/11 0.0250 - - - 0.0250 12.14
06/08/11 06/09/11 06/09/11 0.0250 - - - 0.0250 13.41
03/09/11 03/10/11 03/10/11 0.0150 - - - 0.0150 13.42
12/08/10 12/09/10 12/09/10 0.0066 - - - 0.0066 13.00
09/08/10 09/09/10 09/09/10 0.0250 - - - 0.0250 11.24
06/09/10 06/10/10 06/10/10 0.0400 - - - 0.0400 11.04
03/10/10 03/11/10 03/11/10 0.0300 - - - 0.0300 11.46
12/08/09 12/09/09 12/09/09 0.0088 - - - 0.0088 10.45
09/08/09 09/09/09 09/09/09 0.0250 - - - 0.0250 10.07
06/09/09 06/10/09 06/10/09 0.0300 - - - 0.0300 9.21
03/10/09 03/11/09 03/11/09 0.0350 - - - 0.0350 6.66

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 0.99
Distribution (12b-1) fees 0.25
Other expenses 0.24
Acquired fund fees and expenses 0.02
Total annual Fund operating expenses 1.50
Total annual Fund operating expenses may differ from the expense ratio in the Fund's Financial Highlights because they include only the Fund's direct operating expenses and do not include acquired fund fees and expenses, which reflect the estimated amount of the fees and expenses incurred indirectly by the Fund through its investments in mutual funds, hedge funds, private equity funds, and other investment companies.

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. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. 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 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.

Chuck Royce lead manager since 2013 (co-manager 2011-2013 and manager 1993-2011), Jay Kaplan since 2011 (assistant portfolio manager 2005-2011), assistants George Necakov since 2005 and Chris Flynn since 2007

1/3/2002 12:00:00 AM

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