Bill Hench in MarketWatch
article 09-18-2018

Bill Hench in MarketWatch.com

Bill Hench talked to Philip Van Doorn of MarketWatch about the prospects for aerospace and defense stocks as the U.S. military budget is set to increase.

TELL US
WHAT YOU
THINK

MarketWatch recently featured Bill Hench in an opinion piece titled “Aerospace And Defense Sector May Keep Flying High For Years to Come” by Philip van Doorn.

Read the piece here.

The piece quoted “three veteran money managers,” including Bill, about how aerospace and defense (A&D) stocks are performing after federal tax cuts were implemented this year and the U.S. military budget is set to increase. “The nice thing about this industry is you do not have to guess what is going to happen,” Bill said.

“He pointed to significant barriers to entry for defense contractors of all sizes as being an important advantage for the subsector,” the article said. Bill noted that Carpenter Technology and Haynes International are two notable supply companies for defense contractors, and he also highlighted Wesco Aircraft Holdings as a supply-management services and company supplies components corporation servicing mainly aviation companies around the world.

“You and I are not going to form a company that makes landing gear tomorrow, from scratch,” Bill noted. “It is highly specialized and tough to get new entrants.”

“In a market where people are worried about trade and interest rates, this is a well-established channel with good funding,” he added.

Read the piece here.

Important Disclosure Information

Average Annual Total Returns as of 6/30/18 (%) 

  QTR1 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Opportunity 6.72 17.23 12.24 11.40 11.15 11.48 11.93 12.61 11/19/96
Russell 2000 7.75 17.57 10.96 12.46 10.60 10.50 8.03 8.90 N/A

Annual Operating Expenses: 1.18% 

1 Not annualized.

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 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.

Percentage of Fund Holdings As of 6/30/2018 (%)

  Opportunity
Carpenter Technology 0.9%
Haynes International 0.7%
Wesco Aircraft Holdings 0.8%

Mr. Hench’s thoughts and opinions concerning the stock market are solely their own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future. Company examples are for illustrative purposes only. This does not constitute a recommendation to buy or sell any stock. There can be no assurance that the securities mentioned in this piece will be included in any Fund’s portfolio in the future.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

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. The Fund invests primarily in small-cap and micro-cap stocks, which may involve considerably more risk than investing in 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.

Share:

Subscribe:

Sign Up

Follow: