Royce Premier Fund in Barron's "Small-Caps Surging Back"
article 04-11-2016

Royce Premier Fund in Barron's "Small-Caps Surging Back"

Barron's highlights Royce Premier Fund in an interview with portfolio managers Lauren Romeo and Steven McBoyle, who speak to their investment strategies, and what they look for in companies.  


Royce Premier Fund was highlighted by Barron's in Today’s Top 5 Stock Picks: Small-Caps Surging Back, written by Crystal Kim.

The article follows the market shift surrounding small-caps, highlighting Premier Fund: the "tide may be turning:”

Co-managers Lauren Romeo and Steven McBoyle speak to their investment strategies and what they look for in companies.

Kim describes the fund as, "a good example of the short-, or perhaps medium-term, pain that must be endured to reap long-term rewards… It’s been a tough slog for small stocks in recent years, but Royce Premier fund is leading the rebound."

Lauren and Steven "look for companies with strong balance sheets, high cash flow relative to reported earnings, sustainable pricing power and attractive return on capital."

Steven explained how long the firm has followed many of the companies in the fund, "And many of those stocks that land in the Premier fund have been vetted and owned for an average of eight years in other Royce funds."

Royce Premier Fund seeks quality-oriented companies, those with a proven ability to compound wealth over long periods of time, structural advantages within their industry, and high, consistently strong returns on invested capital.

Read the article on Barron'

Average Annual Total Returns as of 3/31/16 (%)

Premier 4.41 4.41 -8.34 3.75 3.64 5.79 10.54 11.11 12/31/91
Russell 2000 -1.52 -1.52 -9.76 6.84 7.20 5.26 7.68 9.06 N/A
Annual Operating Expenses: 1.10%

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 Operating expenses reflect the Fund's total annual operating expenses for the Investment Class as of the Fund's most current prospectus and include management fees and other expenses.

Important Disclosure Information

Lauren Romeo and Steven McBoyle are Portfolio Managers of Royce & Associates, LP, investment adviser to The Royce Funds. Ms. Romeo and Mr. McBoyle's thoughts and opinions in this interview concerning the stock market are solely their own and, of course, there can be no assurance with regard to future market movements.

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 Premier Fund invests primarily in small-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. The Fund also generally invests a significant portion of its assets in a limited number of stocks, which may involve considerably more risk than 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 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.)

Percentage of Fund Holdings as of 3/31/16 (%)

Ritchie Bros. Auctioneers Landstar System Cognex Copart Alleghany
Premier 2.53 2.26 2.41 2.46 2.23
Small-Cap Leaders 1.423 1.32 0.46 0.00 0.00
Pennsylvania Mutual 1.95 1.59 1.45 2.14 0.00
Value Trust 1.20 0.95 1.14 1.07 0.00
Heritage 1.24 0.73 0.00 2.49 2.27
Special Equity 0.00 0.00 0.00 0.00 0.00
Special Equity Multi-Cap 0.00 0.00 0.00 0.00 0.00

There can be no assurance that any of the securities mentioned in the interview will be included in these portfolios in the future. References to specific securities in this interview are not intended as recommendations and should not be relied upon as the basis for anyone to buy, sell, or hold any security.



Sign Up