Miles Lewis on Asset TV’s Small-Cap Masterclass—Royce
article 10-26-2021

Miles Lewis on Asset TV’s Small-Cap Masterclass

PM Miles Lewis was a panelist on Asset TV’s Small-Cap Masterclass discussing the appeal of dividends and quality within small cap, supply chain bottlenecks, and more.


Portfolio Manager Miles Lewis joined host Jenna Dagenhart and another investment professional on Asset TV’s Small-Cap Masterclass, which aired October 6, 2021, to talk about supply chain disruptions, inflation, and adding value with a quality approach.

Watch Miles’s appearance here.

Miles detailed how Royce research shows that small caps historically outperform large caps when the 10-yield Treasury is rising, which is currently setting a good backdrop for the asset class. He added that Royce owns procyclical dividend payers, which have also benefited historically from a rising rate environment. In addition, Miles made his case for active management.

“We think there's a lot of different reasons to believe that this value cycle we think we're entering is different than the head fake in 2016,” Miles said. “And so ultimately, what that does is it creates opportunities for long term patient investors like those of us here at Royce."

Watch Miles’s appearance here.

Learn more about Miles Lewis.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of September 15, 2021 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.

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. There can be no assurance that companies that currently pay a dividend will continue to do so in the future.

Return on Invested Capital is calculated by dividing a company’s past 12 months of operating income (earnings before interest and taxes) by its average invested capital (total equity, less cash and cash equivalents, plus total debt, minority interest, and preferred stock). Return on Average Total Equity (ROE) is the trailing twelve month net income divided by the two fiscal period average total shareholders’ equity. Cyclical and Defensive are defined as follows: Cyclical: Communication Services, Consumer Discretionary, Energy, Financials, Industrials, Information Technology, and Materials. Defensive: Consumer Staples, Health Care, Real Estate, Utilities.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

Percentage of Fund Holdings As of 9/30/21 (%)

  Royce Pennsylvania
Mutual Fund
Royce Dividend
Royce Total

Procter & Gamble




Silgan Holdings








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.

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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