Morningstar: Royce Fund's Down Market Strength
article 03-08-2017

Morningstar: Royce Special Equity Fund's Down Market Strength

Morningstar includes Royce Special Equity Fund in its list of "8 Relatively Low-Risk Equity Funds."


In the article "8 Relatively Low-Risk Equity Funds," Morningstar's Russel Kinnel includes Royce Special Equity Fund in the list by looking at mutual funds that showed notable downside performance in the 2007-2009 bear market.

Royce Special Equity Fund has employed "a mix of valuation sensitivity and a tremendous focus on accounting issues. It's the latter that makes the fund stand out and the reason it's one of my favorites."

Russ continued, saying, "Charlie Dreifus looks for clean accounting and ferrets out red flags like no one else. In good times, those red flags might not be reflected in a company's stock price, but they can signal greater problems that get unearthed in recessions."

Charlie Dreifus, who has 49 years of investment experience, manages Royce Special Equity Fund and Royce Special Equity Multi-Cap Fund

Read the Morningstar article here.

Important Disclosure Information

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

Special Equity 15.48 32.21 32.21 5.42 11.82 8.50 10.18 9.54 05/01/98
Russell 2000 8.83 21.31 21.31 6.74 14.46 7.07 8.49 7.08 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. 

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.

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.)



Sign Up