Financial Planning recognizes Pennsylvania Mutual Fund for its 40-Year Performance
article 01-30-2017

Financial Planning recognizes Pennsylvania Mutual Fund for its 40-Year Performance

Royce Pennsylvania Mutual Fund, one of the first open-end small-cap funds, is in Financial Planning's list of funds with strong performance for the past 40 years. 


Royce Pennsylvania Mutual Fund made Financial Planning's "Top funds for the past 40 years", which lists funds with strong long-term performance.

The list, based on 40-Year Average Annual Total Returns, highlights the performance history of each fund, including the best and worst annual performances. There are 250 equity funds (880 including all share classes) that have a 40-year record, according to Morningstar.

Royce Pennsylvania Mutual Fund has the longest tenured manager on Financial Planning's list: Portfolio Manager Chuck Royce has more than 44 years of experience managing the Fund.

Here are some other interesting stats that we compiled from results decade by decade:
• 1976-1986: All 20 funds had annualized returns >10%
• 1986-1996: All 20 funds had annualized returns >10%
• 1996-2006: 14 funds had annualized returns >10%
• 2006-2016: Only 2 funds had annualized returns >10%

Pennsylvania Mutual Fund's core approach combines multiple investment themes and offers wide exposure to small-cap stocks by investing in companies with high returns on invested capital or those with strong fundamentals and/or prospects trading at what Royce believes are attractive valuations.

Portfolio Manager Chuck Royce describes the Fund's approach: "Our task is to scour the large and diverse universe of small-cap companies for businesses that look mispriced and underappreciated, with the caveat being that they must also have a discernible margin of safety. We are looking for stocks trading at a discount to our estimate of their worth as businesses."

Chuck Royce has 54 years of investment industry experience. Chuck manages Royce Pennsylvania Mutual Fund, Royce Premier Fund (with Lauren Romeo and Steven McBoyle), Royce Total Return Fund and Dividend Value Fund (with Jay Kaplan), and Royce Global Financial Services Fund (with Chris Flynn). He also manages Royce Value Trust, Micro-Cap Trust, and Global Value Trust, the firm's three closed-end fund offerings.

Read Financial Planning's list here.

Important Disclosure Information

Average Annual Total Returns (%) as of 12/31/16

  QTR 1YR 3YR 5YR 10YR 20YR 40YR
Pennsylvania Mutual 10.38 26.47 3.61 11.50 6.45 10.33 13.19
Russell 2000 8.83 21.31 6.74 14.46 7.07 8.25 N/A
Annual Operating Expenses: 0.93%

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, 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 it's investment in mutual funds, hedge funds, private equity funds, and other investment companies.

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.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss.



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