Francis Gannon Featured On Nasdaq’s TradeTalk
article 10-03-2018

Francis Gannon Featured On Nasdaq’s TradeTalk

In an interview with Jill Malandrino on Nasdaq’s TradeTalks, Francis Gannon spoke about inflation and rising interest rates, and how the two may impact small-cap stocks.

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On Sept. 27, Francis Gannon was a guest on Nasdaq’s TradeTalks, hosted by Jill Malandrino.

Francis spoke with Jill about inflation and rising interest rates, and how the two may impact small-cap stocks. Francis noted that the two historically have a positive impact on small-caps, and he added that higher rates are a sign of a more normal environment. When asked about the Russell 2000 and risk, Francis said the index is becoming increasingly leveraged, which, along with rising rates, is making the small-cap index more risky.

Watch the video.

Francis added that rising rates are beneficial to active managers. Although volatility has decreased since the beginning of 2018, he said he expects lower returns and increased volatility in the near future, citing this year marking the third year of double digit returns for the Russell 2000—something Francis noted has not been seen in 20 years. When asked about what he believes are great investments at this time, he picked economically sensitive and cyclical areas of the market.

Co-CIO Francis Gannon has been with Royce for 12 years, having joined in 2006. He has 25 years of experience, and in 2001 a portfolio under his management, SunAmerica Growth and Income Fund, was listed in the fourth edition of Gene Walden's book The 100 Best Mutual Funds to Own in America. He was also a regular panelist with Louis Rukeyser's Wall Street for several years. Francis holds a bachelor’s degree and a master’s degree from Boston College.

Important Disclosure Information

Mr. Gannon’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.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

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. Index returns include net reinvested dividends and/or interest income. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. Frank Russell Company is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. This is a presentation of Royce. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in Royce’s presentation thereof.

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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