Special Equity in Morningstar's "5 Small-Cap Medalists for Your Radar"
article 03-31-2016

Special Equity in Morningstar's "5 Small-Caps for Your Radar"

Morningstar highlights Royce Special Equity Fund, managed by Charlie Dreifus, as a "compelling option" when looking at actively managed small-cap funds. 


Morningstar highlights Royce Special Equity Fund in "5 Small-Caps for Your Radar."

The article by Alex Bryan looks at actively managed small-cap funds open to new investors and describes Special Equity, managed by Charlie Dreifus, who's assisted by Steven McBoyle, as a "compelling option."

Bryan characterizes Special Equity as "a conservative strategy that was recently reopened to new investors. Managers Charlie Dreifus and Steven McBoyle target stocks with high returns on capital, strong balance sheets, attractive valuations, and conservative accounting practices."

The Fund's Overall Morningstar Rating™ is Four Stars (out of 380 Small Value funds tracked by Morningstar as of 3/31/16).

Charlie Dreifus has 46 years of investment experience, 17 of which at Royce. Charlie manages Royce Special Equity Fund and Royce Special Equity Multi-Cap Fund

Steven McBoyle has 24 years of investment experience and joined the firm in 2007. In addition to serving as assistant portfolio manager for Special Equity and Special Equity Multi-Cap, Steven assists on Royce Premier Fund and is lead portfolio manager of Royce Heritage Fund.

Read the article on Morningstar.com.

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. Royce Special Equity 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.) As of 12/31/15, 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.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Royce Special Equity Fund was rated against the following numbers of U.S.-domiciled small value funds over the following time periods: 380 funds in the last three years, 331 funds in the last five years, and 215 funds in the last ten years. With respect to these small value funds, Royce Special Equity Fund received a Morningstar Rating of 2 stars, 3 stars and 5 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

© 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.



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