Our New Sub-Advised Portfolio Available to Canadian Investors—Royce
article 08-19-2021

Our New Sub-Advised Portfolio Available to Canadian Investors

Our new Franklin Templeton sponsored portfolio expands access to Royce investment expertise to more non-US investors.


Royce Investment Partners has assumed sub-advisory responsibility for an existing global small cap portfolio for Canadian investors, as of August 9, 2021. This portfolio will be managed using Royce’s Global Small Cap Premier Quality Strategy. Including this portfolio, Royce currently sub-advises nearly $2.0 billion in small-cap portfolios for non-U.S. investors.

As CEO Chris Clark noted for the launch of a similar global small cap portfolio unlisted Australian unit trust, which Royce is also sub-advising, we continue to be excited about the opportunities identified in collaborating with our local Franklin Templeton colleagues. This sub-advised global small cap portfolio, he said, is an extension of our specialized investment capabilities for Canadian investors, broadening the availability of Royce’s investment expertise to more non-U.S. investors.

Description automatically generated with low confidenceThe portfolio management team consists of four skilled managers: Lead PMs Steven McBoyle and Mark Rayner, and PMs Lauren Romeo and Mark Fischer.

People in suits

Using our Global Small Cap Premier Strategy, the Fund seeks to invest in high-quality businesses with three key differentiators:

  • Exceptional franchises – companies with durable competitive advantages operating in favorable industry ecosystems
  • Strong capital allocators – company management teams with histories of disciplined capital allocation
  • Business with attractive reinvestment prospects – companies with opportunities to reinvest at high returns

This portfolio will invest in a limited number of companies, typically less than 100 positions, and is not available to U.S. investors.

Important Disclosure Information

Royce Investment Partners, investment adviser to The Royce Funds, is a small-cap equity specialist offering portfolios with distinctive investment approaches to address specific investment goals. The firm has been managing U.S., global and international micro-cap, small-cap and small/mid-cap strategies portfolios for more than 45 years.

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.

Effective August 9, 2021, Royce & Associates, LP (operating as Royce Investment Partners) (“Royce”) replaced Templeton Investment Counsel, LLC as the sub-advisor to Franklin Royce Global Small Cap Premier Fund (formerly Templeton Global Smaller Companies Fund). Royce is an affiliate of the Manager.

Effective August 9, 2021, Templeton Global Smaller Companies Fund has been renamed Franklin Royce Global Small Cap Premier Fund. The investment objective of the fund remains the same. Certain investment strategies have changed. Please refer to Amendment No.1 to the Simplified Prospectus for the fund, dated June 24, 2021, for further details.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts document before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.



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