article 03-30-2017

Steve Lipper in MarketWatch: How should active management fit into one's portfolio?

Steve Lipper tells MarketWatch why investors considering an active management strategy should look at small-caps. 

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Senior Investment Strategist Steve Lipper discusses why small-caps could be worth considering when looking active management strategies with reporter Ryan Vlastelica in the article "How should active management fit into one's portfolio?"

The article examines how active managers could potentially "protect against volatility by readjusting to changing conditions," and investors looking to diversify might look for "subcategories where the professional analysis of a manager can add value."

Steve highlights small-caps as an asset class worth considering, "Because there are more small companies and less analyst coverage of them, managers can more easily find values there than they would be able to in the large-cap space."

He also added, "Your probabilities of success with an active manager are better in small-cap equities rather than large cap."

Steve suggests investors should look at the active share of a fund: "If you want an active manager, then you want an *active* manager. You want him because he doesn’t look like the benchmark."

The article highlights the significance of fund managers investing in their own portfolios.

Read the MarketWatch article on active management here.

Important Disclosure Information

The thoughts and opinions expressed in the article are solely those of the persons speaking as of March 27, 2017 and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

There can be no assurances with respect to future small-cap market performance. 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.)

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