Morningstar Mentions Royce Special Equity Fund
article 05-24-2016

Morningstar Mentions Royce Special Equity Fund

Morningstar author Russ Kinnel describes Portfolio Manager Charlie Dreifus as a "very value-conscious investor, very balance-sheet-focused investor."


Royce Special Equity Fund was highlighted by Morningstar's Russel Kinnel during a discussion with Christine Benz about its annual investor returns study.

Charlie Dreifus's Fund is mentioned as "a fund where investors have earned a good share of the fund's actual returns."

Russ elaborates, saying, "The telling story for Royce Special Equity was 2008--the fund lost a little less than 20%, which was absolutely brilliant. Very few equity funds lost less because Charlie Dreifus is a very value-conscious investor, very balance-sheet-focused investor."

Also describing Charlie's strategy, Russ says, "Therefore it's a very defensive strategy and so his fund lost a lot less. And if you look at flows, the fund had a trickle of inflows in '08, a little more inflows in '09, and kind of steady flows for a while until it closed a few years later. And that’s really the ideal situation."

Royce Special Equity Fund's Overall Morningstar Rating™ is Four Stars (out of 383 Small Value funds tracked by Morningstar as of 4/30/16).

Charlie Dreifus, who has 46 years of investment experience, manages Royce Special Equity Fund and Royce Special Equity Multi-Cap Fund. Steven McBoyle, who has 24 years of investment experience, serves as assistant portfolio manager for Special Equity and Special Equity Multi-Cap. Steven is a portfolio manager on Royce Premier Fund and Royce Heritage Fund.

Watch the video here.

Important Disclosure Information

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

Special Equity 5.63 5.63 -9.60 3.67 5.76 6.57 N/A 8.59 05/01/98
Russell 2000 -1.52 -1.52 -9.76 6.84 7.20 5.26 7.68 6.15 N/A
Annual Operating Expenses: 1.15%

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 180 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.

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. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

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: 383 funds in the last three years, 332 funds in the last five years, and 219 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 ended 4/30/16, respectively. Past performance is no guarantee of future results.

Royce Special Equity Fund invests primarily in small-cap stocks, which may involve considerably more risk than investing in larger-cap stocks The Fund also invests primarily in a limited number of stocks, which may involve considerably more risk than a less concentrated 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 (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 in Foreign Securities" in the prospectus.)

© 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.



Sign Up