Two Royce Funds Highlighted by Morningstar
article 05-10-2016

Royce Premier and Special Equity Funds Highlighted by Morningstar

Morningstar describes the recently reopened Royce Premier and Special Equity Funds as two portfolios with "nimble" strategies that may present buying opportunities for contrarian investors.

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Royce Premier and Special Equity Funds are highlighted by Morningstar's Christine Benz in an article about recently reopened funds and their strategies.

Despite recent performance, recently reopened funds could present a good buying opportunity: "It's frequently better to buy a fund upon its reopening (often when performance is in a trough) than it is to rush the doors when it’s about to close."

Royce Premier Fund is mentioned, along with Portfolio Manager Chuck Royce, with Morningstar Analyst Alex Bryan giving, "plaudits to the fund for its sensible focus on high-conviction names with durable pricing power, as well as its experienced management."

In addition, Royce Special Equity Fund and Portfolio Manager Charlie Dreifus are highlighted along with the five other funds.

Analyst Alex Bryan describes Charlie's investment process, as "inherently conservative, focusing on companies with reasonable valuations, strong balance sheets, high returns on capital, and conservative accounting practices. Those exacting criteria have helped the fund hold up well in previous market swoons, such as in the early 2000s and again during the global financial crisis."

You can read the entire article here.

Important Disclosure Information

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

  QTR YTD 1YR 3YR 5YR 10YR 20YR SINCE
INCEPT.
DATE
Premier 4.41 4.41 -8.34 3.75 3.64 5.79 10.54 11.11 12/31/91
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 N/A N/A
Premier Annual Operating Expenses: 1.13%
Special Equity 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 www.roycefunds.com. 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.)

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.)

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.)

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